Integrated Annual Report 2013/14

INTEGRATED ANNUAL REPORT 2013/14

About this annual report

This 2013/14 annual report offers stakeholders and interested parties a comprehensive overview of the operations, activities and performance of the City of Cape Town for the 2013/14 financial year.

The content of this annual report is aligned with the strategic focus areas (SFAs) and underlying objectives of the City’s five-year Integrated Development Plan (2013/14 review), and is also informed by a number of other plans and documents produced by the various City directorates and business areas, including:

The integrated Annual Report 2012/13 (Backward looking)

The Integrated Human Settlements Five-Year Strategic Plan, July 2012 – June 2017 (2014/15 review)

The five-year Integrated Development Plan (2013/14 review)

The 2014/15 – 2016/17 budget

Each of these publications offers comprehensive information and data covering the components of the City’s five strategic pillars that are relevant to its readers or to the stakeholders of the directorate that produced it.

While this means that each publication can be read independently of the others, to gain a comprehensive understanding of the City’s planning, performance and budgeting structures, the suite of books should preferably be considered in its entirety.

INTEGRATED Annual Report | 2013/14 1 THE CITY OF CAPE TOWN’S VISION AND MISSION

The vision and mission of the City of Cape Town is threefold: • To be an opportunity city that creates an enabling environment for economic growth and job creation, and to provide help to those who need it most • To deliver quality services to all residents • To serve the citizens of Cape Town as a well-governed and corruption-free administration

In striving to achieve this vision, the City’s mission is to: • contribute actively to the development of its environmental, human and social capital; • offer high-quality services to all who live in, do business in or visit Cape Town as tourists; and • be known for its efficient, effective and caring government.

Spearheading this resolve is a focus on infrastructure investment and maintenance to provide a sustainable drive for economic growth and development, greater economic freedom, and increased opportunities for investment and job creation.

To achieve its vision, the City of Cape Town is building on the strategic focus areas it has identified as the cornerstones of a successful and thriving city, and which form the foundation of its five-year Integrated Development Plan. These are as follows:

THE OPPORTUNITY CITY

Pillar 1: Ensure that Cape Town continues to grow as an opportunity city.

THE SAFE CITY

Pillar 2: Make Cape Town an increasingly safe city.

THE CARING CITY

Pillar 3: Make Cape Town even more of a caring city.

THE INCLUSIVE CITY

Pillar 4: Ensure that Cape Town is an inclusive city.

THE WELL-RUN CITY

Pillar 5: Make sure Cape Town continues to be a well-run city.

These five focus areas inform all the City of Cape Town’s plans and policies.

2 INTEGRATED Annual Report | 2013/14 INTRODUCTION

The City of Cape Town continues to work concertedly towards aligning all of its reporting with its integrated operational and strategic approach as well as the internationally accepted principles and best practices of integrated reporting. This 2013/14 annual report continues this commitment, and is the City’s third attempt at moving its annual report towards meeting integrated reporting standards and requirements. This report provides City of Cape Town stakeholders and interested parties with comprehensive information about the City’s financial, operational, social and environmental performance for the 12 months under review, and offers a view of the challenges and opportunities that the City faces in its ongoing efforts to deliver opportunities and services to all its citizens. The City’s integrated reporting approach is in keeping with its commitment to the requirements and recommendations of the King III Report, which sets out international best practices for the governance of private and public organisations. That said, the City acknowledges that there is still work to be done to achieve full alignment with these and other integrated reporting principles and, while it is confident that it is moving steadily forward in its efforts to achieve such alignment, this is likely to be a gradual journey. MATERIALITY

In order to continue the journey towards full compliance with all the principles of integrated reporting, the content of this annual report aligns with various material issues as reflected in the City’s Integrated Development Plan and other sector plans. As such, these material matters are identified by the City to be addressed as part of the delivery of its service mandate and through the achievement of its long-term vision. Some of the City’s key material issues include the following: • Mitigating carbon emissions and helping to address climate change • Efficient water supply, use and management • Efficient energy supply, use and management • Effective waste management • Economic sustainability through financial prudence • Effective and transparent governance and risk management • Achievement of environmental sustainability and biodiversity objectives • Sustainable land use and development • Customer communication and satisfaction measurement • Sustainable procurement • Infrastructure maintenance and development • Transformation, diversity and talent management

INTEGRATED Annual Report | 2013/14 3 4 INTEGRATED Annual Report | 2013/14 CONTENTS

About this annual report 1 THE VISION AND MISSION OF THE CITY OF CAPE TOWN 2 Introduction and Materiality 3 Highlights of the 2013/14 Financial year 6 Message from the Executive Mayor of Cape Town 8 Statement by the City Manager 9

World Design Capital 2014 11

OVERVIEW OF THE CITY OF CAPE TOWN About Cape Town 16 Understanding Cape Town’s key challenges 16 The Cape Town Spatial Development Framework 17 Ensuring sustainable economic growth and social development 19

GOVERNANCE, COMPLIANCE AND RISK MANAGEMENT Management and governance structures and frameworks 22 Good governance as a sustainable foundation 26 Compliance and auxiliary services 26 Public participation 28 Summary of 2013/14 community satisfaction survey results 29

2012/13 PERFORMANCE REVIEW SFA 1 – The opportunity city 34 SFA 2 – The safe city 64 SFA 3 – The caring city 68 SFA 4 – The inclusive city 82

ORGANISATIONAL DEVELOPMENT SFA 5 – The well-run city 88

FINANCIAL PERFORMANCE AND ECONOMIC SUSTAINABILITY Overview of the 2014/15 budget 100

ANNUAL FINANCIAL STATEMENTS Approval of the consolidated annual financial statements 106 Report of the Auditor-general to the Western Cape Provincial Parliament and the council on the City of Cape Town 108 Report of the Audit Committee for the year ended 30 June 2014 111 Report by the Chief Financial Officer 116 Financial statements and policy 2013/14 121 Appendices 193

APPENDICES Appendix A: Definitions for corporate scorecard performance indicators 210 Appendix B: 2013/14 Annual Performance Management Report – City of Cape Town 216 Appendix C: CTICC performance scorecard for the 2013/14 financial year 222 Appendix D: Capital Budget summary per Subcouncil and Ward — Summary per Subcouncil 224 Appendix E: List of abbreviations, tables and figures 226

DENOTES:

National Development Plan Objectives delivered More online

INTEGRATED Annual Report | 2013/14 5 HIGHLIGHTS of the 2013/14 Financial year

The City of Cape Town received an unqualified audit opinion, as well as a clean 70% audit status, from the Auditor of residents rated the City's General of South Africa for performance as good, the 11th and 2nd very good or excellent consecutive (up from 69% in 2012/13, 63% in years respectively. 2011/12 and 57% in 2009/10)

Received high 77 investment rating World Design Capital of Aa3 from independent projects completed rating agency

Record spend of 38 305 R2,9 billion Expanded Public on repairs and Works Programme job maintenance opportunities created

7,7 million passenger journeys undertaken on MyCiTi public transport

6 INTEGRATED Annual Report | 2013/14 2 028 water service 5 916 points (taps) provided sanitation service points (toilets) provided 4 391 subsidised electricity connections installed

City call 5 718 centre scored serviced site housing 4+ out of 5 opportunities provided (on the Likert scale) 83% of emergencies responded to within 14 minutes 96,85% of workplace skills plan budget spent 40recreation hubs established

INTEGRATED Annual Report | 2013/14 7 MESSAGE FROM THE Executive Mayor

The City performed well in the 2013/14 financial year. Cape legislation actually intended: the complete alignment of Town is maintaining its excellent record of high-quality service democratic will with a programme of government. delivery and being responsive to the needs of its citizens. Through it all, we have managed our resources in such a way But having put in place this great plan, we need to know that it that we ensure our continuing success and proudly obtained a is working, which is the function of the annual report. We need clean audit from the Auditor-General. to see the outcomes that we are delivering to the people, for their own benefit and for our own progress reports. There are still areas where there is room for improvement – there always are for an organisation committed to exceeding Any government must be willing to address problems, not We have managed our its own performance. We will continue to address those areas resources in such a simply seeing them as requiring solutions but also presenting and others to ensure that we build the best possible city for way that we ensure our opportunities. In so doing, we commit ourselves to the principle our citizens. continuing success and of innovation and dynamic leadership – qualities that will help proudly obtained a clean take us forward into the future. audit from the Auditor- We have undertaken a particular programme of governance to General. turn the five pillars into a development programme until 2016. With the five pillars as our guide, we will help take Cape Town to Those pillars are the opportunity city, the safe city, the caring the next level of government in South Africa and make progress city, the inclusive city and the well-run city. possible, together.

We have achieved a great deal. We took an electoral manifesto and turned it into a development plan. The Integrated Development Plan maps out our goals, plans and ambitions for the remainder of this term, which is already well under way. AldERMAN PATRICIA DE LILLE It has been complemented by our medium-term Economic Executive Mayor of Cape Town Growth Strategy and Social Development Strategy.

I believe that we have achieved something quite unique in local government in South Africa and, in fact, what national

8 INTEGRATED Annual Report | 2013/14 STATEMENT by the City Manager

The City of Cape Town is an organisation unlike any corporate City of Cape Town as the best-run metro in South Africa, and the institution. Its success is not measured by financial turnover only one to have earned a clean audit this year, together with or profitability. Rather, the true measure of its effectiveness is 10 previous unqualified audits. This clearly provides a sound the extent to which it is able to assist in transforming the lives basis for taking the City to the next level. of the people of Cape Town. While financial prudence and an ability to attract investment are key to this outcome, we at the Like any city, Cape Town still faces many challenges. But despite City of Cape Town only consider ourselves truly successful if we these, it is a city characterised by effective delivery of valuable are making a tangible and lasting contribution towards helping services, a reliable supply of electricity and water, growing individuals, communities and businesses in Cape Town realise public transport infrastructure, a commitment to economic The true measure of the futures they desire for themselves. upliftment, and a highly enabling and attractive environment the City’s effectiveness for investment. is the extent to which This means that we do not see our function and responsibility as it is able to assist in a destination to be reached, but rather as an ongoing journey. transforming the lives The City of Cape Town remains 100% committed to building Our entire administration is on this immensely challenging, of the people of Cape and reinforcing this enabling environment, because that is yet rewarding journey of commitment to service provision and Town. the only way we can ensure continued economic growth that transformation – together. creates more jobs, provides a better life for all, and makes real progress possible – together. The promise of the new City of Cape Town’s corporate identity is “Making progress possible. Together”. It’s a promise that speaks to the City’s commitment to work with its citizens and stakeholders. It also reflects the City’s commitment to ACHMAT EBRAHIM assist in empowering all Cape Town citizens to capitalise on City Manager opportunities and take control of their lives and destinies.

Over the past year, our progress has particularly been bolstered through the finalisation of the City’s Social Development Strategy and Economic Development Strategy, as well as the ongoing refinement of an effective transversal management approach. This has certainly enabled us to better position the

INTEGRATED Annual Report | 2013/14 9

WORLD CAPITAL DESIGN 2014 challenges. This programme is aimed at involving all 111 all involving at aimed is programme This challenges. ward-based various to solutions find to together work businesses and citizens local and designers officials, City which at workshops co-creation of series 18-month-long an instituted has City the one, For programme. official the of part were that projects of anumber has administration The Directorate. Marketing and Events Tourism, the within located is this achieving with tasked team The administration. the to bring can innovation and thinking design-led that value the of awareness internal an create to opportunity aunique as it seen and designation Capital Design World the leveraged also itself has Town administration Cape of City The • • T thousands of Cape Town residents. The full set can be viewed on the City’s website. City’s the on viewed be can set full The Town residents. Cape of thousands of lives the on 2014 having is Capital Design World by prompted thinking design-led that impact positive the demonstrate they Together, pages. these on outlined are projects these of some Just sector. public the in thinking design-led of power transformative the of examples fine as forward put City the that projects design-led 77 of collection a was initiative significant Another • • four broadthemes: following the on centred projects end, To this future. asustainable Town for Cape reposition and inclusion, economic and social rebuild in spirit, and in structure city our reconnect divides, historic bridge that projects on therefore was 2014 focus Capital Design Town’s World Cape Town. Cape across needed change economic and social the drive to thinking design-led harnessing of thread acommon by together tied are all administration, its and citizens its city, the of aspects various on touch 2014programme Capital Design World official the on projects 460-odd the While city. the transform and change to in design excellence of use the maximise to designation the leveraged Town has 2014, for Cape Capital Design World As strategies. revitalisation in urban successes highlight to as well as design, innovative promoting and in attracting accomplishments their showcase to cities for opportunity adistinctive presents it such, as and, citizens and economies spaces, urban on design of impact the of essence broader the on focus its is designation the of uniqueness The cities. world’s the of development cultural and economic social, the further to he vision of the World Design Capital project is to promote and encourage the use of design design of use the encourage and promote to is project Capital Design World the of vision he

craft, art and creativity and art craft, Be To Br Af rican Innovation. Global Conversation – African ideas that speak to the world the to speak that ideas –African Conversation Global Innovation. rican day for Tomorrow – Sustainable solutions for people and planet and people for solutions –Sustainable Tomorrow for day idging the Divide – Design that reconnects our city and reconciles our communities our reconciles and city our reconnects that –Design Divide the idging autiful Spaces. Beautiful Things – Inspiring architecture, interiors, food, fashion, jewellery, jewellery, fashion, food, interiors, architecture, –Inspiring Things Beautiful Spaces. autiful “ together, development.” human creates city and realise that design in all forms, when its added initiatives hasus and made together different b areWe grateful for the World Design Capital Patricia de de Patricia idding process and title. It has helped to bring L ille, Executive Mayor, City of Cape Town Cape of Mayor, City Executive ille,

w ards of the metropole. metropole. the of ards

The City of Cape Town undertakes thousands of initiatives in its striving to deliver the best possible services to its citizens and visitors. The projects listed here are a sample of these which serve to demonstrate how design-led thinking is being enabled and delivered throughout the administration, and is improving quality of life for the people it serves.

Though the identified projects are not a comprehensive picture of innovation in the City, they provide a powerful overview. The projects have been divided into eight broad categories: Economic development; environment; health; housing; management process; social support and development; staff development; and utilities and transport.

PROJECT CATEGORY: ENVIRONMENT Award-winning solid waste transfer and materials recovery plant Transforming waste into a useful resource was the key focus in the design of the ultramodern, award-winning Kraaifontein waste management facility. This is the first integrated recycling facility in South Africa. It sorts 100 tonnes of dry recyclables a day and includes a public drop-off site and facilities to sort dry waste and chip green waste. The aim is to divert as much waste as possible from landfill sites and to make recycling economically viable.

PROJECT CATEGORY: ECONOMIC DEVELOPMENT Langa cultural precinct Langa, one of the city’s oldest settlements, is a tourist destination and a cultural node. The Langa cultural precinct comprises the Guga S’thebe Arts and Culture Centre, the Old Pass Office Museum, the Old Post Office building and Mendi Park. Guga S’thebe now also has a 200-seat theatre, designed by an international design team comprising Cape Town architect Carin Smuts as well as architecture students from the Peter Behrens School of Architecture in Düsseldorf, RWTH Aachen University in Germany, and the University of Cape Town Architecture School.

PROJECT CATEGORY: HEALTH Antiretroviral (ARV) clubs City Health’s partnered ARV clubs remove eligible (stable and responding) HIV patients from overcrowded clinics. Patients now spend only 30 minutes at clinics every few months. Over 15% of all patients receiving ARVs at primary- care facilities currently do so through the club system.

PROJECT CATEGORY: HOUSING Enabling and supporting owner-built subsidised housing The Umzimhlope People’s Housing Process project, for which the City provides project management, training and support, has provided 300 subsidised owner-built housing units in Khayelitsha. Beneficiaries are required to seek assistance from friends, or employ others to help them build their homes at their own cost. They can access a housing subsidy to plan and manage the work. A support organisation is appointed to manage the project.

12 INTEGRATED Annual Report | 2013/14 One City – 77 projects 2014 PROJECT CATEGORY: MANAGEMENT PROCESS

Integrated system for policing and emergency CAPITAL DESIGN WORLD response A highly sophisticated integrated emergency contact centre, which is plugged into the City’s policing, crime prevention and emergency services, ensures an effective and appropriate emergency response. The spatially enabled operating platform also provides the intelligence that allows for proactive visible policing where it is needed. Once it is functioning according to OVERVIEW OF

final objectives, this system will be a world first. THE CITY OF CAPE TOWN

PROJECT CATEGORY: SOCIAL SUPPORT AND DEVELOPMENT Community-driven gardening initiative that beautifies the city The City Parks urban gardening project supports and encourages AND RISK MANAGEMENT RISK AND

communities to create gardens (or food gardens) on parks or COMPLIANCE GOVERNANCE, unoccupied public land. Community gardening offers myriad positive benefits, ranging from community-building to the creation of green lungs, and beautifies open spaces in Cape Town. The project provides practical guidance and hands-on help to interested communities who seek support. 2012/13

PROJECT CATEGORY: STAFF DEVELOPMENT REVIEWPERFORMANCE Forum for changing attitudes towards gender stereotypes Gender stereotyping can severely limit opportunities for growth, development and enhancement in an organisation. City Men for Change, a sub-forum of the Gender Equity Programme, aims to improve education and awareness through a support group of male staff designed to help men examine their attitudes and behaviour around gender stereotypes. ORGANISATIONAL DEVELOPMENT ORGANISATIONAL

PROJECT CATEGORY: UTILITIES AND TRANSPORT Unitary transport authority The City’s new transport authority, Transport for Cape Town (TCT), is responsible for the municipality’s traditional functions of transport planning and roads and stormwater management,

but its remit now extends to the management and integration SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL of every form of public transport. The MyCiTi integrated transit system is setting the template for bus services, and TCT’s increasing responsibility for commuter rail will improve all aspects of public transport. STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL APPENDICES

INTEGRATED Annual Report | 2013/14 13

Ensuring sustainableeconomicgrowth andsocialdevelopment The Cape Town SpatialDevelopmentFramework Understanding Cape Town’s key challenges Cape TownAbout O verview

o f

t he C it y

o f C ap e T ow n 19 17 16 16

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 About Cape Town The IDP is structured according to the same five pillars or strategic Cape Town is a focus areas as outlined above, and each of these is cascaded into As both the oldest city in South Africa and the country’s significant economic, measureable objectives, programmes and deliverables. legislative capital, Cape Town is a significant economic, political political and business and business hub, not to mention a key driver of South African This 2013/14 annual report is closely aligned with these hub. and African growth and development. IDP focus areas, objectives and programmes, and offers an The city has the second-largest population of all cities in the overview of the City’s achievements and challenges in terms country, and is one of the most-visited tourist destinations on of meeting these. the entire African continent. Understanding Cape Town’s key challenges Added to this, Cape Town’s popularity as a preferred Produced every two years, the State of Cape Town report offers residential location has meant steady growth in the city’s detailed information on, and analysis of, the opportunities population. This growth trend is expected to continue for the and challenges facing Cape Town, while also highlighting foreseeable future, with the city’s total population anticipated issues that need to be kept track of and attended to as the to reach approximately 4,4 million by 2030. City moves forward, into the future. The 2012 report covers All of these factors create significant challenges for the city’s five themes: people, the natural environment, the economy, infrastructure and administrative processes. The City of Cape urban growth and form, as well as urban governance. A Town’s response to these challenges is encapsulated in its summary of this report is provided below. For more detail on vision to create a highly inclusive society by working towards the State of Cape Town report, visit www.capetown.gov.za/en/ greater economic freedom for all. EnvironmentalResourceManagement/publications/Documents/ This, in turn, requires an increase in opportunities through State_of_Environment_Report_2012.pdf the creation of an economically enabling environment in which investment can be optimised and jobs can be created. Demographics At the time of Census 2011, the population of Cape Town To achieve this vision, the City is committed to building on the comprised 3,7 million people, made up of 1,07 million household five pillars it has identified as the cornerstones of a successful units. Cape Town’s total population grew by almost 30% between and thriving city. These are: 2001 and 2011, and 46% from 1996 to 2011. A substantial • an opportunity city; proportion of new households in the city take the form of informal • a safe city; shelter, either in informal settlements or backyard dwellings. There has been a substantial increase in Cape Town households • a caring city; living in backyards over the past 20 years, confirming a dire need • an inclusive city; and for more low-income housing across the city. • a well-run city. Health The City takes a highly integrated approach to delivering on HIV/Aids and tuberculosis (TB) remain the key health challenges these five pillars and realising its vision. This approach is clearly facing Cape Town residents. While HIV prevalence in Cape Town set out in its five-year Integrated Development Plan (IDP), which is stabilising, it is still at a high level. The 2010 antenatal survey represents the City’s strategic guide and informs all planning, showed an HIV prevalence of 19,1% in Cape Town. TB incidence management, development and service delivery actions. often coincides with HIV/Aids prevalence.

The City is committed to increase opportunities through the creation of an economically enabling environment in which investments can be optimised and jobs created.

16 INTEGRATED Annual Report | 2013/14

2014 WORLD DESIGN CAPITAL DESIGN WORLD OVERVIEW OF THE CITY OF CAPE TOWN AND RISK MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, 2012/13 The Cape Town Spatial Development Framework offers guidelines on urban growth in a sustainable, integrated and equitable manner. PERFORMANCE REVIEWPERFORMANCE

Education The Cape Town Spatial Development According to the Statistics South Africa General Household Framework (CTSDF) Survey (GHS) 2011, approximately 50% of the total The Cape Town Spatial Development Framework and population in Cape Town aged 20 years and older have had associated district plans offer guidelines on how and where less than 12 years of schooling. Around 7% had received Cape Town should grow in the future. These spatial plans less than Grade 7 education, therefore being considered guide new investment, give effect to the principles and functionally illiterate, and a further 1,2% had never attended priorities of the City’s development strategies, and identify an educational institution. priority areas for strategic intervention. ORGANISATIONAL DEVELOPMENT ORGANISATIONAL Poverty Approved by Council in terms of section 34 of the Municipal As in the rest of South Africa, poor households and residents Systems Act (Act 32 of 2000), the CTSDF (together with the Provincial Spatial Development Framework) is the spatial in Cape Town predominantly struggle with unemployment planning document with the highest legal status applicable and lack of income. In 2011, indigent households in Cape to the municipal area of Cape Town. It focuses on a number Town comprised 21% of the total number of households in of key areas of the city’s development, particularly managing the city. According to the GHS 2011, 35,7% of Cape Town growth and land use changes in the city, and ensuring that households reported a monthly income of up to R3 500 (the urban growth happens in a sustainable, integrated and poverty line used by the City of Cape Town). equitable manner. As such, the CTSDF: ECONOMIC SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL Crime • aligns the City’s spatial development goals, strategies Crime constitutes one of the City’s key strategic challenges. and policies with those of the national and provincial Cape Town’s overall crime levels in 2011/12 were around spheres of government; twice the national average. Drug crimes and murder are • indicates those areas best suited to urban development, among the most frequently occurring serious crimes in Cape the areas that should be protected, and the areas where Town, and have a higher incidence in Cape Town than in the development may occur if it is sensitively managed; other major metros. STATEMENTS

• indicates the desired phasing of urban development; FINANCIAL ANNUAL For a detailed overview of these and other challenges facing the City of Cape Town, please refer to pages 13 to 17 of • guides changes in land use rights; and the 2014/15 review of the City of Cape Town’s Integrated • helps spatially guide, coordinate, prioritise and align Development Plan (2012 – 2017) available for download at public investment infrastructure and social facilities in https://www.capetown.gov.za/en/IDP/Pages/Planning.aspx. the City’s five-year IDP. APPENDICES

INTEGRATED Annual Report | 2013/14 17 The CTSDF is fundamental to the City’s achievement of its sustainability objectives, and is underpinned by a clearly defined set The City’s economic of strategies and substrategies, as outlined in the table below: development is Table 1.1: Cape Town Spatial Development Framework strategies and substrategies structured around providing the right CTSDF strategy Substrategies basic services, transport Plan for employment, • Promote inclusive, shared economic growth and development and information and improve access to • Address spatial economic imbalances and communication economic opportunities • Establish an integrated, citywide public transport system that supports the accessibility grid technology • Integrate land use, economic and transport planning infrastructure. • Support the rationalisation, upgrade and/or development of economic gateways, and appropriately manage land use around them

Manage sustainable • Facilitate urban development urban growth, and create • Support incremental development processes a balance between • Encourage a more compact form of urban development urban development and • Appropriately protect the citizens of Cape Town from hazardous environmental protection areas/activities • Appropriately manage urban development impacts on natural resources, critical biodiversity areas and natural corridors • Make efficient use of non-renewable resources • Protect and enhance the city’s rural environment

Build an inclusive, • Transform the apartheid city integrated, • Proactively support publicly led land reform and new housing delivery vibrant city • Encourage integrated settlement patterns • Enhance the unique sense of space and the quality of the built form of Cape Town • Enhance the value of heritage resources and scenic routes • Promote accessible, citywide destinations and places

For more details on the CTSDF, visit www.capetown.gov.za/en/SDF.

The City’s Economic Growth Strategy positions Cape Town within a broader global, national and regional economic trend.

18 INTEGRATED Annual Report | 2013/14 Ensuring sustainable economic growth and social development Economic Growth Strategy Social Development Strategy Local government is mandated by the Constitution of the The City of Cape Town’s Social Development Strategy 2014 Republic of South Africa to promote social and economic (SDS) articulates the administration’s role in promoting development. The City of Cape Town’s response to this and maximising social development. Social development mandate is set out in its Economic Growth Strategy (EGS). is understood broadly as the overall improvement and CAPITAL DESIGN WORLD The principal objective of the EGS is to grow the economy and enhancement of the quality of life of all people, especially create jobs – the overarching objective of the opportunity people who are poor or marginalised. At the core of this city. It presents the City of Cape Town’s response to the most strategy is a focus on addressing poverty, inequality and social fundamental challenges facing Cape Town in the years ahead. ills, while providing for the participation of people in their Too many people are unemployed, too many people are own development. The SDS sets out what the City is doing and poor, and the city’s lacklustre current and projected growth plans to do, and articulates where external stakeholders, such rates mean that this situation is unlikely to change if the as contracted service providers and organisations receiving OVERVIEW OF City grants, will contribute to creating an opportunity, safe, organisation follows a ‘business as usual’ approach. THE CITY OF CAPE TOWN caring, inclusive and well-run city that allows people to reach The EGS marks a departure from the City’s previous approaches their potential. to the economy in that it adopts a ‘whole organisation’ approach. It also positions Cape Town within broader global, national It is also closely connected to the EGS, as social development and regional economic trends. Two of these stand out: the interventions promote people’s ability to engage in economic rapid shift in investment and commercial activity towards the activity, while economic growth is also central to social urban centres of the East and South (which is resulting in high development. rates of economic growth, particularly in mid-sized cities), and The SDS is structured around five high-level objectives. These structural changes in the domestic economy, particularly in the are as follows:

Western Cape, towards the tertiary sector. The EGS outlines how MANAGEMENT RISK AND the City aims to respond to the challenges and opportunities • Maximising income-generating opportunities for COMPLIANCE GOVERNANCE, these bring and, crucially, identifies what the City needs to do in people who are excluded or at risk of exclusion order to maximise benefits for the people of Cape Town. Based • Building and promoting safe households and communities on the latest research on globally competitive cities, the EGS is structured around five strategic areas. • Supporting the most vulnerable through enhancing access to infrastructure and services • Building a globally competitive city through institutional and regulatory changes • Promoting and fostering social integration 2012/13

• Providing the right basic services, transport and information • Mobilising resources for social development REVIEWPERFORMANCE and communications technology infrastructure The SDS adopts a transversal approach to social development, • Utilising work and skills programmes to promote viewing the organisation as an integrated whole where each inclusive growth directorate has a role in facilitating social development. Hence, the way that all the departments provide services, • Leveraging trade and sector development functions to plan, regulate, employ people or directly intervene in maximise advantage communities is designed to ultimately promote the social • Ensuring that growth is environmentally sustainable in development of communities. the long term ORGANISATIONAL DEVELOPMENT ORGANISATIONAL ECONOMIC SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL

The City’s Social Development Strategy provides for the participation of people in their own development. APPENDICES

INTEGRATED Annual Report | 2013/14 19

Summary of 2013/14communityperception surveyresults Summary of Public participation Compliance andauxiliary services Good governanceasasustainablefoundation Management andgovernancestructures andframeworks GOVERNANCE, COMPLIANCE AND RISK MANAGEMENT 29 28 26 26 22

Seated, from left: Ald Anthea Serritslev (Chief Whip), Ald Ian Neilson (Executive Deputy Mayor and Mayco member for Finance), Executive Mayor, Ald Patricia de Lille, and Ald Dirk Smit (Speaker). Standing, from left: Ald Belinda Walker (Mayco member for Community Services and Special Projects), Cllr Benedicta van Minnen (Mayco member for Health), Cllr Siyabulela Mamkeli (Mayco member for Human Settlements), Cllr Brett Herron (Mayco member for Transport for Cape Town), Ald Jean-Pierre (JP) Smith (Mayco member for Safety and Security), Cllr Johan van der Merwe (Mayco member for Economic, Environmental and Spatial Planning), Cllr Garreth Bloor (Mayco member for Tourism, Events and Economic Development), Cllr Suzette Little (Mayco member for Social Development and Early Childhood Development), and Cllr Xanthea Limberg (Mayco member for Corporate Services). Absent: Cllr Ernest Sonnenberg (Mayco member for Utility Services).

MANAGEMENT AND GOVERNANCE STRUCTURES AND FRAMEWORKS This chapter provides an overview of the framework of The governance structure the institutional management and governance structures The model below depicts the political governance through which the City implements its strategies, using the arrangements of the City of Cape Town: appropriate resources.

GOVERNANCE: COUNCIL

Executive Mayor

Schedule 1 Other section 79 committees Section 79 portfolio committees Executive Mayoral Committee

Disciplinary Committee SPELUM Utility Services

MPAC Corporate Services Ad-hoc committees, working groups and task teams Rules Finance

Energy and Climate Change Safety and Security Urban Regeneration

Community Services Section 80 committees

Health Naming

Human Settlements Special Events

Homeless Agency (Homac)

Speaker Tourism, Events and Marketing

Social Development and Early Childhood Development Economic, Environmental and Spatial Planning

Transport for Cape Town

Subcouncils Section 166 MFMA

Ward committees Audit Committee

Section 62 MFMA Regulations SAPS Act

Planning and General Appeals Committee Budget Steering Committee Civilian Oversight Committee

Figure 2.1: City of Cape Town’s governance structure

22 INTEGRATED Annual Report | 2013/14 Mayoral Committee • Cllr D America – Corporate Services (replaced by Cllr T Uys

The Mayoral Committee (Mayco) is appointed by the Executive with effect from 29 May 2014) Mayor. Mayco exercises the powers, functions and duties • Cllr J Slabbert – Human Settlements delegated to it by the Executive Mayor and designated to it by Council. These powers, functions and duties are performed • Cllr C Brynard – Safety and Security 2014 and exercised by the Executive Mayor, Alderman Patricia de • Cllr S August – Utility Services

Lille, together with her Mayco members, who are as follows: CAPITAL DESIGN WORLD • Cllr A van der Rheede – Community Services • Ald I Neilson – Executive Deputy Mayor, and Finance • Cllr C Clayton – Health • Ald B Walker – Community Services and Special Projects • Cllr J van der Merwe – Finance (replaced by Cllr S Diamond • Cllr G Bloor – Economic, Environmental and Spatial with effect from 29 May 2014) Planning (replaced by Cllr J van der Merwe with effect from 19 May 2014) • Cllr X Limberg – Economic, Environmental and Spatial Planning (replaced by Cllr D Bryant with effect from • Cllr G Pascoe – Tourism, Events and Marketing (vacated 29 May 2014) OVERVIEW OF

this position on 22 April 2014; replaced by Cllr G Bloor THE CITY OF CAPE TOWN with effect from 19 May 2014) • Cllr R Arendse – Social Development and Early Childhood Development • Cllr S Little – Social Development and Early Childhood Development • Cllr T Uys – Homeless Agency (replaced by Cllr P Maxiti with effect from 29 May 2014) • Cllr T Gqada – Human Settlements (replaced by Cllr S Mamkeli with effect from 19 May 2014) Other section 79 committees • Cllr E Sonnenberg – Utility Services Spatial Planning, Environment and Land Use • Ald JP Smith – Safety and Security Management Committee AND RISK MANAGEMENT

Chairperson: Cllr C Kannenberg COMPLIANCE GOVERNANCE, • Cllr B Herron – Transport for Cape Town The terms of reference of this committee relate to spatial planning, • Ald D Qually – Corporate Services (replaced by town planning, the environment and other related matters. Cllr X Limberg with effect from 26 May 2014) Municipal Public Accounts Committee (MPAC) • Cllr L Gazi-James – Health (replaced by Cllr B van Minnen Chairperson: Cllr S Mxolose with effect from 19 May 2014)

This is the mechanism through which Council oversees the 2012/13 expenditure of public money. As far as financial management Clusters and committees

is concerned, MPAC enables Council to fulfil its constitutional REVIEWPERFORMANCE Section 79 portfolio committees obligation to scrutinise and oversee executive actions. The terms of reference of all section 79 portfolio committees It does this by holding the Accounting Officer and councillors include the formulation of policy and the monitoring of its accountable for their spending of ratepayers’ money and their implementation within their specific functional areas. Portfolio stewardship of public assets, to ensure regular, economical, committees are chaired by councillors, who are appointed efficient and effective local government spending. by full Council. Council established 12 section 79 portfolio MPAC conducts its affairs in a non-party-political manner so committees which function within the City’s management as to maximise the effectiveness of its work. The committee clusters, namely the economic and social clusters: ensures that the City’s oversight report, as envisaged in Economic cluster section 129 of the Municipal Finance Management Act (Act 56 • Transport for Cape Town of 2003) (MFMA), is prepared for adoption by Council. It also DEVELOPMENT ORGANISATIONAL investigates and advises Council in respect of unauthorised, • Utility Services irregular or fruitless and wasteful expenditure in terms of • Economic, Environmental and Spatial Planning section 32(2) of the Act. • Tourism, Events and Marketing Rules Committee Chairperson: Ald D Smit (Speaker) • Finance The Rules Committee is concerned with the rules of procedure • Corporate Services of Council and its committees.

Social cluster Homeless Agency Committee SUSTAINABILITYECONOMIC • Human Settlements Chairperson: Cllr T Uys (replaced by Cllr P Maxiti AND PERFORMANCE FINANCIAL • Health with effect from 29 May 2014) The Homeless Agency Committee is the political oversight • Social Development and Early Childhood Development body that ensures that issues dealing with homeless • Community Services people (children, adults and youth living on the streets) are adequately addressed, and that previous and future

• Safety and Security programmes undertaken by the City in this regard are STATEMENTS • Homeless Agency properly implemented and stay on track. FINANCIAL ANNUAL The portfolio committee chairpersons are as follows: Energy and Climate Change Committee • Cllr R Hoorn – Tourism, Events and Marketing Chairperson: Cllr M Kempthorne The Energy and Climate Change Committee is tasked with the • Cllr T Thompson – Transport for Cape Town integration and delivery of all energy matters in the City. APPENDICES

INTEGRATED Annual Report | 2013/14 23 Section 80 committees • internal audit; The City of Cape Town’s Naming Committee • risk management; senior administrative Chairperson: Cllr B Herron structure is aligned • information technology; This committee considers and makes recommendations to with its elected political the Executive Mayor on matters pertaining to the naming of • investigations; structure. streets, buildings and the like, for onward recommendation to • accounting policies; Council, where required. • adequacy, reliability and accuracy of financial reporting Special Events Committee and information; Chairperson: Cllr G Pascoe (replaced by Cllr G Bloor with effect from 4 June 2014) • performance management; This committee considers and makes recommendations to the • entities; Executive Mayor on applications to the City to host events, for • effective governance; onward recommendation to Council, where required. • compliance with the MFMA, the annual Division of Municipal Systems Act section 62 committee Revenue Act and any other applicable legislation; Planning and General Appeals Committee • performance evaluation; and Chairperson: Ald D Smit (Speaker) • any other issues referred to it by the municipality. This committee considers appeals against decisions taken in terms of delegated or subdelegated authority by political The committee is further required to review the annual structures, political office bearers or councillors. financial statements (and the Auditor-General’s audit report) in order to provide Council with an authoritative and credible Schedule 1 committee view of the municipality’s financial position, its efficiency and effectiveness, and its overall level of compliance Disciplinary Committee with applicable legislation. Such review also enables the Chairperson: Ald A Serritslev (Chief Whip) committee to respond to Council on any issues raised by the This committee is tasked with investigating any alleged Auditor-General in the audit report. breach of the code of conduct for councillors, and making The Audit Committee does not have executive responsibility, appropriate recommendations to Council. It also investigates and acts primarily in an oversight capacity. The Audit Committee non-attendance of meetings, and imposes fines as does not perform any management functions or assume any determined by the rules of order of Council. management responsibilities. It provides a forum for discussing business risk and control issues, in order to develop relevant Municipal Finance Management Act recommendations for consideration by the City Manager, Mayco section 166 committee and Council for their approval or final decision. Audit Committee The membership, resources, responsibilities and authorities Every municipality is obligated to establish an independent audit (composition, functions and operations) required by the Audit committee in terms of section 166 of the MFMA, as amended. Committee to perform its role effectively are stipulated in The Audit Committee advises the municipal council, political the Audit Committee terms of reference, which are approved office bearers, accounting officer and managerial staff on by Council. The committee is constituted in terms of the matters relating to: requirements of sound corporate governance practices, and operates within that framework. • the Auditor-General and other external auditors; • sy stems of internal control (including internal financial South African Police Service Act control) and audit reports; (Act 68 of 1995) committee Civilian Oversight Committee In terms of section 64J of the South African Police Service Act of 1995, Council has appointed the Civilian Oversight Committee to ensure civilian oversight of the municipal police service.

Speaker Office of the Speaker The Office of the Speaker’s responsibilities include coordination of all processes flowing from subcouncil delegations, disciplinary investigations in terms of the code of conduct for councillors and municipal employees, rules of meetings of political structures, as well as the Planning and General Appeals Committee. The Speaker also has an oversight function in respect of Council, its committees, subcouncils and ward committees.

24 INTEGRATED Annual Report | 2013/14 Subcouncils

A metropolitan subcouncil has such duties and powers as the metro council may delegate to it in terms of section 32 of the Municipal Structures Act. It may make recommendations to the metro council on any matter affecting its area of responsibility. A metropolitan subcouncil may advise the metro council on the duties and powers that should be delegated to it. Subcouncils’ terms of reference are as follows: 2014 • To make recommendations to Council on any matter affecting their areas of jurisdiction WORLD DESIGN CAPITAL DESIGN WORLD • To exercise any power, duty or function delegated by Council • To exercise any power, duty or function conferred upon them in terms of the Subcouncil By-law

Subcouncils and chairpersons Executive Management Team (EMT) • Subcouncil 1 Cllr H Brenner The EMT leads the City’s drive to achieve its strategic • Subcouncil 2 Cllr G Twigg objectives, as outlined in the IDP each year. OVERVIEW OF Macro-organisational design: City Manager and executive

• Subcouncil 3 Ald J Vos (moved after elections) THE CITY OF CAPE TOWN directors • Subcouncil 4 Ald C Justus The City of Cape Town’s senior administrative structure is • Subcouncil 5 Cllr R Rau aligned with its elected political structure. The structure is set out below: • Subcouncil 6 Cllr W Jaftha • Subcouncil 7 Cllr G Fourie Executive Management Team Achmat Ebrahim City Manager • Subcouncil 8 Cllr S Pringle Mike Marsden Deputy City Manager (retired end of • Subcouncil 9 Cllr J Thuynsma November 2013) AND RISK MANAGEMENT GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, • Subcouncil 10 Cllr P Mngxunyeni Adv Tshidi Executive Director (ED): • Subcouncil 11 Cllr M Nikelo Mayimele-Hashatse Corporate Services • Subcouncil 12 Cllr E Andrews Seth Maqetuka ED: Human Settlements • Subcouncil 13 Cllr R Bazier Richard Bosman ED: Safety and Security

• Subcouncil 14 Cllr N Landingwe Dr Zandile Mahlangu- 2012/13 Mathibela ED: City Health

• Subcouncil 15 Ald B Watkyns REVIEWPERFORMANCE Kevin Jacoby ED: Finance • Subcouncil 16 Cllr T Amira (replaced by Qually) Dr Gisela Kaiser ED: Utility Services • Subcouncil 17 Cllr G March Lokiwe Mtwazi ED: Community Services • Subcouncil 18 Cllr M Oliver Melissa Whitehead Commissioner: Transport for Cape Town • Subcouncil 19 Ald F Purchase Anton Groenewald ED: Tourism, Events and Marketing • Subcouncil 20 Cllr I Iversen Dr Ivan Bromfield ED: Social Development and • Subcouncil 21 Cllr S Vuba Early Childhood Development

• Subcouncil 22 Cllr J Heuvel Japie Hugo ED: Economic, Environmental DEVELOPMENT ORGANISATIONAL • Subcouncil 23 Cllr N Bent and Spatial Planning • Subcouncil 24 Cllr X Sotashe Gerhard Ras ED: Compliance and Auxiliary Services

CITY MANAGER

DEPUTY CITY MANAGER (This office ceased to exist on 4 December 2013) ECONOMIC SUSTAINABILITYECONOMIC EXECUTIVE MANAGEMENT TEAM AND PERFORMANCE FINANCIAL

COMPLIANCE AND AUXILIARY CORPORATE SERVICES HEALTH HUMAN SETTLEMENTS SERVICES

UTILITY SERVICES FINANCE COMMUNITY SERVICES TRANSPORT FOR CAPE TOWN

TOURISM, EVENTS AND STATEMENTS

ECONOMIC, ENVIRONMENT AND SPATIAL PLANNING FINANCIAL ANNUAL MARKETING

SOCIAL DEVELOPMENT AND EARLY CHILDHOOD DEVELOPMENT SAFETY AND SECURITY

Figure 2.2: City of Cape Town’s Executive Management Team structure APPENDICES

INTEGRATED Annual Report | 2013/14 25 GOOD GOVERNANCE AS A products and services. The programme is designed to The City is one of the enable an evaluation of the Department’s conformance first municipal entities SUSTAINABLE FOUNDATION with the IIA’s international standards and code of ethics, as to have taken several Truly effective governance goes beyond legislative well as Internal Audit’s approved charter and methodology. important measures compliance. It embraces local and international best practice, The internal annual quality review indicated that the and strives to strengthen the professional standards and to ensure such Department generally conformed to the IIA’s definition of ethics within the organisation. The City is one of the first internal auditing, the IIA’s international standards for the governance. municipal entities to have taken several important measures professional practice of internal auditing, as well as its code to ensure such governance, including: of ethics. The review further indicated that the Department • the formation of the Municipal Public Accounts effectively carried out its roles and responsibilities as Committee (MPAC); set out in its charter. An external quality review will be performed during the 2014/15 financial year, in line with • the institution of an anti-corruption hotline; the requirements of the IIA. • the formal adoption of the King Code of Governance • Contributions to corporate governance – The Principles for South Africa, 2009 (‘King III’); and Department contributed to strengthening other • the development of a combined assurance framework. governance mechanisms within the City by providing technical support to the MPAC. This included the The King recommendations are considered to be among preparation of reports to Council, governance documents the best codes of governance worldwide, and King III has and reports, presentations for the chairperson to deliver at broadened the scope of governance into one where the core external forums, as well as talk-sheets for the committee philosophy revolves around leadership, sustainability and to share with visitors to the City, given that the City has ethical corporate citizenship. a leading MPAC process. Internal Audit also ensured the provision of quality reports, which the Audit Committee COMPLIANCE AND AUXILIARY used to exercise its oversight responsibility effectively in SERVICES (CAS) terms of its charter. Internal Audit • Promotion and achievement of ad-hoc audit engagement advisory reviews – In the period under The Internal Audit charter indicates that this is an independent review, Internal Audit also proposed an expanded department reporting administratively to the Executive service offering, which was supported by the City’s EMT, Director: Compliance and Auxiliary Services, and functionally provided that the Department achieves the service within to the City’s independent Audit Committee, as delegated by existing resources. Two significant audit requests were Council. The Department’s function is a requirement of the accommodated within the existing audit plan, and other MFMA and is largely directed by the international standards auxiliary requests were accommodated and reported to for the professional practice of internal auditing of the Institute the City’s Audit Committee. of Internal Auditors (IIA). The Department significantly contributes to governance within the organisation, thus Key initiatives and projects promoting the City’s commitment to being a well-run city. During the year under review, the Internal Audit team Through its charter, Internal Audit is mandated to provide implemented various audit techniques to enhance the value independent, objective assurance and advisory services, geared added to the organisation. These included the following: towards adding value and improving the City’s operations. It helps the organisation to accomplish its objectives through a • Client account management – The use of internal systematic, disciplined approach to evaluate and improve the audit client account managers is intended to build and effectiveness of risk management, control and governance maintain relationships between the Internal Audit processes. Internal Audit communicates audit results to the Department and its clients, with a specific focus on client various levels of management, including executive directors expectations, support, satisfaction and perceptions. and the City Manager, as well as to other assurance providers Internal Audit developed terms of reference for its and the Audit Committee. client account managers, which include key roles and responsibilities, as well as the type, level and frequency Key outcomes and achievements by Internal Audit during the of interaction required to build and maintain client period under review included: relations. The internal audit client account manager • Execution of the annual internal audit plan – In process was implemented, with one-on-one sessions terms of the MFMA and IIA standards, the Department held with individual executive directors, as well as developed and executed its risk-based internal audit sessions with their senior management teams. plans. Internal Audit reconsiders its audit plans on a • Control self-assessment – Control self-assessment is a quarterly basis to ensure that audit projects undertaken process whereby an organisation’s management and staff are aligned with the most pertinent risks. Internal Audit evaluate their own risks and controls. It can be applied completed 90% of its planned audit projects. to projects, processes, business units and functions, • Annual assessment of the City’s internal controls or basically any area of an organisation. Internal Audit – Internal Audit provided assurance regarding the facilitates assessments through a series of meetings, adequacy and effectiveness of controls in business questionnaires and/or workshops. In the year under processes, as well as in specialised areas such as review, the Department continued to roll out control information technology, governance, performance, self-assessment projects to empower line management sustainability, compliance and risk management. to participate in a structured manner in identifying risk exposures of selected activities, assessing the control • Quality assurance and improvement programme – processes that mitigate or manage those risks, as well as The Department maintained its quality assurance and identifying and developing action plans to reduce risks to improvement programme to ensure the quality of audit acceptable levels.

26 INTEGRATED Annual Report | 2013/14 • Continuous auditing – Continuous auditing is defined Risk Management

as the frequent or continuous collection of audit evidence The Integrated Risk Management (IRM) Department ensures and indicators by an auditor, on IT systems, processes, consistent alignment and management of key risks relating transactions and controls. Organisations that deploy to the City’s core strategic objectives. It strives to provide continuous auditing can leverage technology to more reasonable assurance that the key risks and their contributing 2014 efficiently analyse risk data on a frequent basis. This approach factors are mapped to current controls as well as to advise on assists in detecting anomalies, outliers, inconsistencies and actions to be taken to mitigate risks in a cost-effective manner. CAPITAL DESIGN WORLD other factors to more efficiently focus audit resources. In the 2013/14 financial year, the City had 104 risk registers, • The ERP-SAP system is widely used in the City of including the EMT risk register, which is submitted to the Risk Cape Town, with many automated controls in place. Committee, the Audit Committee and the Executive Mayor The Department of Internal Audit regards continuous for oversight purposes. Initiatives are continually researched auditing as an ideal audit methodology to continuously and implemented to further embed risk management in review/monitor such controls within SAP. In addition to the City’s processes. These include improving training,

control monitoring, data analysis reviews can also be enhancing performance measurements, and monitoring OVERVIEW OF compliance with the IRM policy and framework. In addition, scheduled through the continuous auditing tools. These THE CITY OF CAPE TOWN reviews allow a regular examination of processed data IRM continues to assist in enhancing service delivery through in order to identify data anomalies that may point to the optimal utilisation of scarce resources. All targets set for manual-based control breakdowns. the IRM Department were achieved in the year under review. • In 2013/14, this initiative was rolled out to numerous Forensic Services SAP processes, including leave, procure-to-pay, manual The City’s Forensic Services Department is charged with: journals, inventory, revenue master data, real estate, plant maintenance, fleet and basis. Implementation has yielded • providing a reactive forensic service in respect of issues some initial benefits, including improved turnaround relating to significant fraud, corruption, maladministration

times on audits, 100% sampling of records, and an and negligence on the part of any City employee (excluding AND RISK MANAGEMENT GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, improved control environment for areas under review. managers directly accountable to the City Manager) or any agent, contractor, supplier or service provider to the City of • Advisory services – Internal Audit developed an advisory Cape Town; and services framework, strategy and methodology, aimed at increasing the range of value-added services that Internal • driving, developing and/or ensuring the implementation Audit provides to its stakeholders, while maintaining its of proactive anti-fraud/corruption policies and prevention

independence in relation to assurance services. Advisory measures on a Citywide basis. 2012/13 services comprise a wide range of activities based on Forensic Services also undertakes additional proactive awareness management’s needs. These services can be tailored initiatives by reporting statistical information relating to forensic REVIEWPERFORMANCE to resolve specific issues that senior management has investigations to internal governance structures such as the identified as requiring attention, and can be advisory, Executive Mayor, Audit Committee, Risk Committee (when educational and/or facilitative in nature. requested), EMT as well as the EMT Governance Subcommittee. ORGANISATIONAL DEVELOPMENT ORGANISATIONAL ECONOMIC SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL

Cape Town Civic Centre, home to the political and administrative leadership of the City of Cape Town. APPENDICES

INTEGRATED Annual Report | 2013/14 27 PUBLIC PARTICIPATION The City of Cape Town does not plan for people; it plans with them. Town and 700 telephonic interviews with businesses in the And this collaborative approach to ensuring a better future for city. It also included six focus groups with residents and small all is epitomised in its commitment to constantly engage with businesses to probe and investigate issues in more detail. all the people of the city. The results of the survey for the last five consecutive years The City facilitates this feedback and input by providing the reflect a consistent increase in the level of satisfaction with people of Cape Town with comprehensive information on the City’s service delivery efforts. The 2013/14 survey results its plans and proposed actions, and then affording them show that both residents and businesses rate the City’s numerous opportunities to have their say. services and performance highly and that the performance continues to improve. Public engagement on planning The average resident rating of the City’s overall performance The public participation processes comprise mayoral (on a five-point Likert scale) has increased from 2,6 in meetings, subcouncil meetings, meetings with strategic 2009/10 to 2,9 in 2013/14. This is above the target of 2,8 set partners, as well as meetings with City internal staff. by the City for the year under review. This is the same as the Members of the public are also engaged in public places such score achieved in the 2012/13 period, and higher than the as shopping malls, clinics, libraries, schools and cash offices, 2,7 scored in 2010/11 and 2011/12. and are invited to attend all public meetings. City resources The business perception survey results for the 2013/14 such as the CityNews publication and the City database are financial year also indicate that businesses in the city also used to reach residents and invite them to provide input. experience an improvement in the services they receive. The average business rating of the City’s overall performance has Annual community satisfaction survey increased from 3,1 (on a five-point Likert scale) in 2009/10 to A primary vehicle used for gathering City community 3,5 in 2013/14. Previous ratings were 3,2 in 2010/11, 3,3 in feedback is the annual community satisfaction survey, which 2011/12 and 3,4 in 2012/13. is an invaluable source of insight and helps the City identify The business score is relatively high compared with international the specific needs and priorities of Cape Town’s residents and best-practice benchmarks. To the City, this level of confidence is businesses, and then put in place the necessary plans to work essential for the creation of an enabling environment in which towards meeting those needs. the private sector can flourish and jobs can be created through The seventh annual perception survey (2013/14) was the continued attraction of investment. conducted by a contracted independent service provider, and The City will use these latest survey results to inform and made use of statistically valid and reliable samples to ensure a refine its planning and implementation of municipal services representative sample of residents and businesses across the across the metro in line with the objectives and programmes city. The survey took place in October and November 2013 and of the IDP. The survey results will also be used to ensure comprised 3 000 face-to-face interviews with residents of Cape constant enhancement of service delivery standards.

Members of the public are engaged in public places such as shopping malls, clinics, libraries, schools and cash offices, and are invited to attend all public meetings.

28 INTEGRATED Annual Report | 2013/14 Summary of 2013/14 community satisfaction survey results

Residents survey

Overall perceptions of City performance 2014 70% of residents said that, overall, the City of Cape Town’s performance was good, very good or excellent (up from 69% in 2012/13, 63% in 2011/12, 62% in 2010/11 and 57% in 2009/10). From 2012/13 to 2013/14, the number of ‘very good’ responses increased from 16% to 20%, while ‘good’ decreased from 47% to 45%. CAPITAL DESIGN WORLD RESIDENTS OVERALL PERCEPTIONS 60% 2009/10 2010/11 2011/12 2012/13 2013/14

40%

20% OVERVIEW OF THE CITY OF CAPE TOWN

0% POOR FAIR GOOD VERY GOOD EXCELLENT

Figure 2.3: Comparison of residents’ overall perceptions of the City

The City as a service provider 69% of residents rated the City of Cape Town as good, very good or excellent in fulfilling its role as a public service provider (the same as 2012/13 and up from 62% in 2011/12 and 2010/11, and 58% in 2009/10). Since the previous survey, the number of ‘excellent’ AND RISK MANAGEMENT GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, responses increased from 4% to 5%; ‘very good’ increased from 18% to 21%, while ‘good’ decreased from 47% to 43%. RESIDENTS – THE CITY AS A SERVICE PROVIDER 60% 2009/10 2010/11 2011/12 2012/13 2013/14

40% 2012/13

20% REVIEWPERFORMANCE

0% POOR FAIR GOOD VERY GOOD EXCELLENT

Figure 2.4: Comparison of residents’ perceptions of the City as a service provider

Trust in the City 75% of residents rated their level of trust in the City as fairly strong, very strong or extremely strong (up from 74% in 2012/13, 69% in 2011/12, and 66% in both 2010/11 and 2009/10). From 2012/13 to 2013/14, the number of ‘very strong’ responses increased from DEVELOPMENT ORGANISATIONAL 19% to 20%, while ‘fairly strong’ and ‘extremely strong’ remained unchanged at 51% and 4% respectively. RESIDENTS – TRUST IN THE CITY 60% 2009/10 2010/11 2011/12 2012/13 2013/14

40%

20% ECONOMIC SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL

0% NOT AT ALL NOT VERY FAIRLY VERY STRONG EXTREMELY STRONG STRONG STRONG STROMG

Figure 2.5: Comparison of residents’ levels of trust in the City STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL APPENDICES

INTEGRATED Annual Report | 2013/14 29 Areas of strength identified from the 2013/14 residents survey • Essential services have shown a significant improvement in the last year, and continue to remain a relative area of strength for the City overall, particularly refuse collection, water provision, and sewerage and sanitation. • All areas in community facilities have shown a significant improvement in the last year. Library services continue to be one of the highest-rated services by residents. • All aspects of law enforcement have improved significantly in the last year. • Environment and conservation scores have shown significant improvements since 2009/10. Overall cleanliness of the urban environment has improved from 2,6 in 2009/10 to 3,2 in 2013/14. • Overall fire and emergency services scores have improved significantly since 2009/10. Residents consider fire and emergency services to be important. • The overall health score by residents has improved significantly since 2009/10, with all the attributes having increased significantly in 2013/14. Clinics providing preventative care, child health care, and treatment for TB and sexually transmitted diseases are now scoring above the average of three. • Residents’ public transport scores have shown a significant improvement from 2012/13, and steady improvement since 2009/10. In 2013/14, the fixing of traffic lights and easy access to public transport both scored above the average of three.

Priority areas Residents’ main priorities remain job creation and crime prevention. Fighting corruption is still seen as a priority and, in 2013/14, was rated as the third-highest priority, followed by the provision of housing. Business survey Overall perceptions of City performance 88% of businesses said that, overall, the City of Cape Town’s performance was good, very good or excellent (up from 87% in 2012/13, 84% in 2011/12, 80% in 2010/11 and 77% in 2009/10). Between 2012/13 and 2013/14, the number of ‘excellent’ responses increased from 7% to 9% and ‘very good’ from 40% to 45%, while ‘good’ decreased from 40% to 34%. BUSINESSES OVERALL PERCEPTIONS 60% 2009/10 2010/11 2011/12 2012/13 2013/14

40%

20%

0% POOR FAIR GOOD VERY GOOD EXCELLENT

Figure 2.6: Comparison of businesses’ overall perceptions of the City

The City as a service provider 91% of businesses rated the City’s performance in fulfilling its role as a provider of municipal services as good, very good or excellent (up from 89% in 2012/13, 83% in 2011/12, 81% in 2010/11 and 77% in 2009/10). From 2012/13 to 2013/14, the number of ‘excellent’ responses increased from 11% to 13% and ‘very good’ from 43% to 45%, while ‘good’ decreased from 35% to 33%. BUSINESSES – THE CITY AS A SERVICE PROVIDER 60% 2009/10 2010/11 2011/12 2012/13 2013/14

40%

20%

0% POOR FAIR GOOD VERY GOOD EXCELLENT

Figure 2.7: Comparison of businesses’ perceptions of the City as a service provider

30 INTEGRATED Annual Report | 2013/14 Trust in the City

87% of businesses rated their level of trust in the City as fairly strong, very strong or extremely strong (the same as in 2012/13 and up from 84% in 2011/12, 81% in 2010/11 and 80% in 2009/10). Since the previous survey, the number of ‘very strong’ responses increased from 35% to 38% while ‘fairly strong’ decreased from 41% to 38%.

BUSINESSES – TRUST IN THE CITY 2014 60% 2009/10 2010/11 2011/12 2012/13 2013/14 WORLD DESIGN CAPITAL DESIGN WORLD

40%

20%

0% OVERVIEW OF NOT AT ALL NOT VERY FAIRLY VERY STRONG EXTREMELY STRONG STRONG STRONG STROMG THE CITY OF CAPE TOWN

Figure 2.8: Comparison of businesses’ levels of trust in the City

Areas of strength identified from the 2013/14 business survey • Businesses in Cape Town perceive the City as doing • Businesses have also experienced a significant particularly well in terms of providing essential services improvement since 2012/13 in the visible presence of

(water, refuse collection, sanitation, roads and lighting), traffic enforcement on roads and the City’s response to AND RISK MANAGEMENT GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, with scores having increased significantly year-on-year. complaints about noise and other disturbances. • Emergency and fire and rescue services continue to be • Enabling and providing safe and affordable public one of the highest-rated services by businesses. Scores transport has shown an equally significant improvement have increased in the last year. in the last year. • Scores for road maintenance and the fixing of potholes • All of the scores of businesses in interacting with the City around businesses have improved significantly since have shown a marked improvement since 2009/10. In the 2012/13 2012/13; this, however, is a medium-priority area for last year in particular, there have also been improvements, PERFORMANCE REVIEWPERFORMANCE improvement. with the Executive Mayor’s efficiency in dealing with issues facing Cape Town now being the highest-scoring attribute • Businesses continue to rate the City highly with regard to in businesses’ interaction with the City. billings and payments. Scores for most of the attributes have shown a significant improvement in 2013/14, and Priority areas all have improved significantly since 2009/10. For businesses, having adequate measures in place to address • Law enforcement has improved significantly since corruption within the City is a high priority. Businesses identified 2009/10, and a considerable perceived improvement infrastructure as well as safety and security as areas on which the was again experienced in terms of the safety of the City should focus in order to improve the business environment environment in which businesses operate and adequate or climate in Cape Town. Improved transport was identified as the measures being in place to address corruption in the city area that would have the biggest impact on people working in DEVELOPMENT ORGANISATIONAL in the last year. commercial and business areas. ECONOMIC SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL

Resident’s public transport scores have shown a significant improvement from 2012/13. APPENDICES

INTEGRATED Annual Report | 2013/14 31

SFA 4– The inclusivecity SFA 3– The caringcity SFA 2– The safecity SFA 1– The opportunitycity 2013/14 PERFORMANCE REVIEW 82 68 64 34

Th e opPORTUNITY city Creating an A key mission of the City of Cape Town is to create an environment in which investment can grow and jobs can be created. This environment in which involves a multi-pronged strategy that includes attracting investment, encouraging enterprise development, raising the city’s investment can grow and appeal as a creative and educational centre, maximising the value of its geographic location, and investing significantly in jobs can be created, infrastructure, utilities and services. is a key mission of the City of Cape Town. The 2013/14 review of the IDP has identified six key objectives to position Cape Town as an opportunity city: This section of the 2013/14 annual report offers a performance review of the progress made against each of the objectives and underpinning programmes below in the past financial year.

Table 3.1: IDP objectives and programmes for SFA 1

PAGE IN PAGE 2013/14 IN Objective PROGRAMME IDP REVIEW THIS REPORT 1.1: Create an enabling 1.1(a): Western Cape Economic Development Partnership (EDP) programme 30 35 environment to attract 1.1(b): Events programme 30 36 investment that generates 1.1(c): Identification and promotion of catalytic sectors, such as oil and gas 31 38 economic growth and 1.1(d): Small-business centre programme (Activa) 32 40 job creation 1.1(e): Planning and regulation programme 33 41 1.1(f): Development of a ‘green’ economy 33 42 1.1(g): City Development Strategy implementation 33 42 1.2: Provide and maintain 1.2(a): Fibre-optic network programme 35 43 economic and social 1.2(b): Maintenance of infrastructure 35 43 infrastructure to ensure 1.2(c): Investment in infrastructure 38 43 infrastructure-led growth 1.2(d): Expanded Public Works programme (EPWP) 43 53 and development 1.3: Promote a sustainable 1.3(a): Sustainable utilisation of scarce resources, such as water and energy 44 54 environment through the efficient utilisation 1.3(b): Water conservation and water demand management strategy 46 55 of resources 1.4: Ensure mobility through the 1.4(a): Public transport programme 49 57 implementation of an effective 1.4(b): Rail service improvement and upgrade programme 50 59 public transport system 1.4(c): Bus rapid transit (BRT) programme 50 59 1.4(d): Travel demand management programme 51 60 1.4(e): Intelligent transport systems programme 51 61 1.4(f): Institutional reform programme 51 61 1.5: Leverage the City’s assets to 1.5(a): City strategic assets investigation 53 62 drive economic growth and sustainable development 1.6: Maximise the use of 1.6(a): Sectoral education and training authority (SETA) and EPWP funding used to 53 63 available funding and train apprentices and create other external training opportunities. Training of programmes for training apprentices for vacant posts in the administration and the city. and skills development

34 INTEGRATED Annual Report | 2013/14 Key opportunity City achievements in 2013/14

• Named top municipality in the 2014 African Utility • Green Drop score of 89,23% – good increase from Week awards 86,80% in 2011 and 82% in 2009 • Spent 80,23% of its capital budget • Achieved 98,14% for Blue Drop water quality awards 2014 • Finalised 83,64% (2012/13: 80,7%) of building plans • Won Recycling Municipality of the Year award within statutory timeframes • 7,7 million passenger trips taken on the MyCiTi public • R2,9 billion (2012/13: R2,6 billion) invested in repairs transport system CAPITAL DESIGN WORLD and maintenance • Three-year funding agreement and deliverables for • Created 38 305 EPWP job opportunities Western Cape Economic Development Partnership • Launched the solar water heater accreditation programme (EDP) approved by Council • Smart Cape project expanded to provide WiFi to • Ultra-modern award-winning waste management poor communities facility transforms waste into useful resources • Phase 1 of the City’s broadband network completed – • The City’s new cutting-edge valve-exercising machines total of 350 km a first for Africa OVERVIEW OF THE CITY OF CAPE TOWN AND RISK MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, 2012/13 PERFORMANCE REVIEWPERFORMANCE

The City invested R2,9 billion in repairs and maintenance. OPPORTUNITY CITY OBJECTIVE 1.1 CREATE AN ENABLING ENVIRONMENT TO ATTRACT INVESTMENT THAT GENERATES ECONOMIC GROWTH AND JOB CREATION The City of Cape Town again received a rating of Aa3.za To give effect to this commitment, the City and the EDP from Moody’s South Africa. This confirmed that the City has have been working on a number of initiatives during the maintained its strong financial position, that its prudent 2014 calendar year, including the development of a gas financial policies are working, and that it can pay its accounts. energy partnership and the further development of various DEVELOPMENT ORGANISATIONAL A strong rating allows for a lower interest rate on loans from partnerships required to deliver the developmental outcomes banks and other financial institutions, which means that arising from the roll-out of broadband by the City and the the cost of servicing the debt is lower. This places the City Western Cape Provincial Government (‘Province’). The EDP in a stronger financial position, and enables it to continue has also been part of the team tasked with developing an delivering on its mandate to its citizens. Ultimately, a stronger economic performance indicator for the Western Cape. financial position allows for more resources to be allocated to Attracting investment residents, particularly to those most in need of assistance. For the 2013/14 financial year, the City spent a record R4,54 Programme 1.1(a): Western Cape Economic

billion, or 80,30%, of its R5,660 billion capital budget. This SUSTAINABILITYECONOMIC Development Partnership (EDP) programme capital expenditure makes a real and fundamental difference AND PERFORMANCE FINANCIAL The City of Cape Town is a key partner in the Economic to people’s lives by delivering houses, roads, clinics, and Development Partnership (EDP), the purpose of which is to basic infrastructure to ensure that the lights are on and the lead, coordinate and drive the economic growth, development water is running for all the city’s residents. and inclusion agenda for Cape Town and the Western Cape. In December 2013, Council approved a three-year funding Highlights of the City’s capital spend include a range of agreement along with a clear set of deliverables that will see substantive investments in critical areas, most specifically relating to building an opportunity city and improving the lived STATEMENTS the City and the EDP working together to ensure: FINANCIAL ANNUAL reality of all citizens. These investments include R300 million • quality access to decision-makers; for integrated rapid transit (IRT) operations (including bus • support for strategic initiatives; acquisitions and fare management systems) and R1,23 billion for electricity provision as well as significant investments in • economic performance information and intelligence; and broadband infrastructure and the provision of housing. Major

• delivery on the Western Cape investment framework. capital projects include the following: APPENDICES

INTEGRATED Annual Report | 2013/14 35 Table 3.2: City of Cape Town’s major capital projects for the 2013/14 financial year Cape Town has developed a strong Directorate Project Spend in Rands track record as an CITY HEALTH Seawinds Clinic – phase 1 – extensions and upgrade for TB and antiretroviral 2 058 251 events destination, and (ARV) services continues to host major COMMUNITY SERVICES Imizamo Yethu sports complex 1 810 528 global events. Masibambane Hall additions and alterations 3 195 377 CORPORATE SERVICES Broadband project 99 145 300 HUMAN SETTLEMENTS Hanover Park community residential unit (CRU) project 63 431 081 Bardale/Fairdale project 21 082 118 Delft – The Hague housing project 29 492 835 Heideveld CRU project 15 498 615 Manenberg CRU project 117 958 760 Pelican Park Phase 1 housing project 40 719 240 Scottsdene new CRU project 16 081 830 SAFETY AND SECURITY New Melkbosstrand Fire Station 4 776 803 New and replacement emergency response vehicles 208 294 098 TRANSPORT FOR CAPE TOWN IRT Phase 1 infrastructure 403 000 000 IRT N2 express – city to Khayelitsha and Mitchells Plain 24 000 000 IRT buses and fare management 300 000 000 Roads and stormwater rehabilitation/upgrades in low-income areas 142 000 000 Pedestrian and non-motorised transport facilities 56 000 000 Scottsdene taxi rank 24 000 000 Broadway Boulevard Extension, Somerset West/Strand 28 000 000 UTILITY SERVICES Electrification for backyard residences, informal settlements and low-cost 152 780 119 housing Koeberg Road switching station (multi-year project with anticipated 90 327 838 completion in 2014/15) Gugulethu main substation upgrade (multi-year project with anticipated 33 384 745 completion in 2014/15) Athlone-Philippi: Overhead line undergrounding (multi-year project with 50 253 104 anticipated completion in 2015/16) Northern area: Thornton to Langa via Epping Industria – new sewer line to 63 961 897 increase capacity (multi-year project with total cost of R150 million) Sewer network – citywide replacement and upgrade 53 176 396 Water network – citywide replacement and upgrade 63 983 059 Wastewater treatment infrastructure – citywide replacement and 160 085 465 refurbishment to increase capacity Development of disposal facilities 60 572 589 Waste management plant and vehicle replacement 64 003 571

Programme 1.1(b): Events programme Cape Town has developed a strong track record as an events • The events calendar for City-supported events for destination, and continues to host major global events. The City of 2013/14 consisted of 70 approved events. Cape Town’s success in hosting events of various sizes and types • A total of 357 events were supported. throughout the year and throughout various parts of Cape Town has earned the city an enviable reputation as a premier events Overall, the 2013/14 year was very successful from an destination. This reputation and branding, in turn, is critical for events perspective. The highlight was undoubtedly the business perceptions about the city as an investment destination. organisation of the Nelson Mandela commemoration events from 5 to 15 December 2013. This was followed Events also play a pivotal role in generating visitor expenditure by the hosting of the African Nations Championship from and dispersal across the city, and are catalysts for new ways 11 January to 1 February 2014. of working and thinking about providing outstanding visitor experiences in a unique and incredibly beautiful setting. Other highlights included the hosting of the New Year’s Eve of Design to celebrate Cape Town’s status as the World The 2013/14 financial year was the first in which the City’s Design Capital for 2014. Some globally relevant events, investment in events was guided by the newly approved such as the ITU World Triathlon Series and Africa Travel Events Policy and the newly established Special Events Week, were also added to the events calendar. All of the Committee. The annual events calendar was presented to recurring annual events reported growth during 2013/14. Council as part of the budgeting process. The City collected post-event reports from event organisers, Some of the key performance indicators included the following: as required by the Events Policy. The table opposite presents • The Special Events Committee considered 228 events statistics that demonstrate the impact of major annual events proposals, which were submitted through the events held in the city, as supplied by event organisers. support application system.

36 INTEGRATED Annual Report | 2013/14 Table 3.3: Events statistics – impact on Cape Town

Programme

1. Cape Town International Jazz Festival − R553,3 million to the economy − 34 000 festivalgoers 2014 − 350 local and international media

− 22 countries represented CAPITAL DESIGN WORLD − 2 723 jobs created − Media value = R199,8 million − 40 acts, five stages − City contribution = R2,75 million

2. Cape Argus Pick n Pay Momentum − R450 million to the economy Cycle Tour − Traditional media value = R30,3 million

− Social and new media value = R20,1 million OVERVIEW OF − Total events exposure = R55 million − 42 684 entries THE CITY OF CAPE TOWN − 34 395 starters − 3 032 international entries − 39% participants from outside the Western Cape − 97 countries represented − +72 000 expo attendees − City contribution = R865 000

3. Old Mutual Two Oceans Marathon − R266 million to the economy − 30 000 entries AND RISK MANAGEMENT RISK AND

− 27 000 runners in total COMPLIANCE GOVERNANCE, − 11 000 runners in the ultra-marathon − 14 610 estimated runners from outside the Western Cape − 83 countries represented − 50 000 visitors attended the expo − 5,5 live hours of TV coverage − Media value = R10 million − City contribution = R461 835,99 2012/13

4. Absa Cape Epic − R300 million to the economy REVIEWPERFORMANCE − 1,1 million YouTube views − 45 000 spectators along the route − 25 000 hours of global TV coverage − 600 team entries − 175 countries watching on TV − 80 nations represented − First and only mountain-bike stage race broadcast live on TV − City contribution = R1,35 million

5. Mining Indaba − R500 million to the economy

− 7 800 delegates DEVELOPMENT ORGANISATIONAL − 1 500 international companies − 100 countries represented − City contribution = R50 000

6. Design Indaba − R326 million to the economy − 2 500 delegates from around the world − 367 exhibitors − 416 buyers − 40 000 visitors attended the Indaba − City contribution = R2,2 million ECONOMIC SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL 7. Lion of Africa Cape Town Open − 156 professional golfers − 41,5 hours of broadcast coverage − Gross media value = R7 468 207 − Online value = R2 million − City contribution = R2 million

8. ITU World Triathlon Series − Cumulative audience = 4,38 million over 35 networks STATEMENTS

− 24 countries represented FINANCIAL ANNUAL − 109 elite triathletes − 1 913 triathletes in total − 32 schools participated − City contribution = R1,5 million

APPENDICES

INTEGRATED Annual Report | 2013/14 37 Film and event permits The City works to strengthen the competitiveness and The City recognises that The Events Permit Office received a total of 1 505 event permit attractiveness of these priority sectors through programmes it must do everything it applications during the year under review, and a total of 1 147 that promote inclusive growth, investment and trade. These can to ensure that the permits were issued. The Film Permit Office issued 9 371 film programmes are undertaken in partnership with Wesgro and benefits of tourism are permits during the same period. several sector bodies, including the following: felt by communities Promoting economic development through • Business Process Enabling South Africa (BPeSA) – In around the city. the year under review, there was a steady increase in direct tourism in local communities jobs created in the business process outsourcing (BPO) sector. Tourism is a key component of the broader economic BPeSA facilitated investment valued at R797 500 000, which development of Cape Town. As such, the City recognises that created 3 190 direct jobs. The BPeSA Western Cape skills it must do everything it can to ensure that the benefits of portal was launched at the end of 2013. Since the launch tourism are felt by communities around the city. of the skills portal, a lot of effort has gone into improving As part of this process, the City has developed a new draft some of the minor functionality aspects in order to make Tourism Development Framework (TDF), building on the the platform more user-friendly. To date, 29 providers have previous framework of 2005. The previous TDF implementation registered 52 courses. process involved institutional capacity-building, marketing and BPeSA Western Cape also embarked on several outward the development of various support functions. missions, including the Outsourcing and Customer Services The new draft TDF outlines guiding principles, strategic Summit in London on 28 March 2014, the Rockefeller focus areas, key actions and programmes for targeted future Foundation event in Italy, and the Customer Contact tourism development in Cape Town. It further describes how Conference Convention in the United Kingdom, which the City plans to work with partners in the public and private provided BPeSA with networking opportunities with a sectors as well as communities to implement the framework. number of Britain’s leading customer service organisations. The final TDF will form an integral part of the City’s IDP and As a result of the engagement with the Rockefeller Foundation broader processes, such as the growth and development strategy. and Microsoft, BPeSA Western Cape received a grant of US$350 000 in support of the development of a virtual workplace Programme 1.1(c): Identification and promotion platform to enable poor and underprivileged youth to train and of catalytic sectors, such as oil and gas access jobs in the business process outsourcing space. In order to stimulate the growth and development of the In addition, BPeSA has partnered with the City to research the local economy, the City has identified development in the viability of conducting an in-depth study to identify the local following catalytic sectors as critical: stakeholders in the industry’s value chain, assess the space in which they trade, and look at growth opportunities for each • Marine, oil and gas, ship repair and boat-building specific link in the value chain. The research is expected to • Agro-processing and the location of head offices in the result in significant job creation over the next three years. finance and retail sectors • Cape Craft and Design Institute (CCDI) – The City has • Health and medical technology identified craft and design as priority sectors. In October 2013, Council approved funding of R840 000 for the CCDI as part of • The green economy, including energy from the sun, its commitment to facilitate redress through skills development wind and waste and to enable the growth of crafts as an economic sector in Cape • Tourism and events Town. The CCDI, a non-profit organisation, currently has 3 800

The local film industry contributes approximately R5 million to the Western Cape economy and has over the past three years created more than 35 000 jobs.

38 INTEGRATED Annual Report | 2013/14

2014 WORLD DESIGN CAPITAL DESIGN WORLD OVERVIEW OF THE CITY OF CAPE TOWN

The City has identified craft and design as priority sectors. enterprises on its database, which represent approximately SAOGA’s extensive consultation with industry as well as private 15 000 craft producers. Approximately 40% of these producers and public training institutions led to the establishment are based in some of the City’s priority areas, including of the SAOGA Oil and Gas Academy, which will nurture an Mitchells Plain, Gugulethu and Khayelitsha. enabling environment for human capital development in the oil and gas industry in South Africa and beyond. The academy During the period under review, CCDI – as part of its provides a coherent training and skills development solution commitment to contribute to the development of the craft MANAGEMENT RISK AND

to the oil and gas sector, in collaboration with local and COMPLIANCE GOVERNANCE, industry in Cape Town – facilitated training of 1 058 people, international academic institutions and public and private hosted 15 industry events and assisted 1 949 small, medium training providers. and micro-enterprises (SMMEs), 758 of which were black- owned. CCDI also assisted 157 enterprises with export A long-time initiative with Armscor to develop artisans is also support, and facilitated the attendance of 15 trade exhibitions bearing fruit. Currently, 28 trainees are placed at the Simon’s by Western Cape-based enterprises. Town dockyard to gain workplace experience. The City-funded

placement initiative commenced in April 2014, and the next 2012/13 • Cape Information Technology Initiative (CITI) – group of beneficiaries (artisans) have already been recruited The City, in collaboration with other stakeholders, has and have begun with their training. REVIEWPERFORMANCE continued supporting training interventions through CITI. CITI facilitated training of 115 people through CITI-supported • Supporting urban agriculture – During the year programmes – 57 in postgraduate programmes and 58 in under review, the City was involved in the implementation information technology (IT) certification programmes. Of of an urban agriculture support programme that provides these 115 people trained, 95 are employed in internships. strategic assistance to 85 community groups and projects. CITI also facilitated training of eight participants in the My The support takes the form of operational inputs, Business Group programme and 11 women in the Women infrastructure, mentoring, training and advice as well as in Business programme, which aims to provide support and access to land, and is offered in collaboration with internal capacity-building to women-owned IT businesses. and external stakeholders. • Cape Town Fashion Council (CTFC) – The CTFC’s main Supporting and enabling investment DEVELOPMENT ORGANISATIONAL focus is on trade development through the Design Indaba. As part of its strategy to create an enabling environment for In 2014, participating designers generated sales revenue economic growth, the City has taken steps to improve the of R1 million over the four-day period of the expo. Other legislative and micro-economic environment required to supported interventions included assistance to 197 SMMEs, encourage investment. To this end, the City is participating skills training of 433 people, and 29 industry events attended in initiatives such as the National Treasury-sponsored by 1 693 people. programme “Reducing the Cost of Business”, which is aimed • Clotex – A total of 36 people have completed training at creating a business environment conducive to investment through the development of an incubator in Hangberg. All and growth. the attendees who completed the intervention received The City acknowledges that a poor legislative environment is ECONOMIC SUSTAINABILITYECONOMIC certificates, and it is envisaged that these learners will potentially one of the most inhibitive factors in the promotion AND PERFORMANCE FINANCIAL receive further training on industrial machines as part of the of private-sector investment. For this reason, it is reviewing plan for the next financial year. Eight SMMEs were assisted the following areas where legislation may affect business through capacity-building programmes in order to grow performance: their operations. These companies collectively employ a total of 70 employees. • Business registration procedures • South African Oil and Gas Alliance (SAOGA) – SAOGA • Obtaining electricity STATEMENTS has developed industry placement capacity and has placed • Property FINANCIAL ANNUAL 172 further education and training (FET) trainees for workplace learning as a result. City funding paid for more than 50 trainees • Contract enforcement in lifting-machinery inspections to improve their employability, • Construction permits and most of these trainees are now in sustainable employment. The City will continue to support the development of a pool of • Starting a business

skills in order to maximise the benefits of this industry. APPENDICES

INTEGRATED Annual Report | 2013/14 39 Encouraging business through investment incentives Programme 1.1(d): Small-business centre The City invested The City approved an Investment Incentives Policy as a key tool programme (Activa) almost R12,3 million to stimulate and attract investment in additional economic Stimulating entrepreneurship in the promotion and nodes in the metro area. This initiative was introduced as The City recognises that entrepreneurs are the backbone development of Cape a pilot in Atlantis, being one of the areas targeted for the of Cape Town’s economy, and hold the greatest potential Town’s entrepreneurs attraction of investment to boost job creation. for job creation. As such, during the year under review, the and in support of Since the adoption of the Atlantis investment incentives City invested almost R12,3 million in the promotion and existing small to medium pilot scheme in May 2013, the programme has already development of Cape Town’s entrepreneurs and in support of enterprises. had a positive impact on the economic landscape of this existing small to medium enterprises. impoverished area. The strong uptake of the electricity tariff subsidy incentive in particular has contributed to the The City’s investment in entrepreneurial development included: retention of more than 2 000 jobs. Apart from the electricity • R2 million for facilitating access to affordable tariff subsidy, potential investors who consider relocating to, workspaces; or expanding their business in the Atlantis industrial area now enjoy an array of incentives, including: • R2 million for BPeSA; • exemption from a development application fee; • R1,7 million for CITI; • development application fast-tracking; • R500 000 for the Furniture Technology Centre Trust (a sector-specific incubation project in Nyanga); • development contribution deferrals or debt write-offs (capped at a maximum of R1 million per investment, • R840 000 for the CCDI; and provided that the investor creates at least 50 new • R1,35 million for the Informal Markets Strategy, permanent full-time jobs within two years); and including the Cape Town summer markets and informal • rapid access to Council-owned land in the Atlantis Green night market programmes; and Technology Park. • R425 000 in support of local enterprises, including Based on these incentives, a Spanish company has already business information sessions, quarterly sessions applied to the City to acquire a site in the Atlantis Green with informal trading associations as well as the spaza Technology Park at an estimated investment value of incubation project. R300 million. This alone is expected to create approximately Other key initiatives that formed part of the entrepreneurial 220 jobs. In addition, 43 non-financial incentive uptakes and investment programme included: 34 financial incentive uptakes have been recorded. • enabling ease of doing business in Cape Town; The City is also engaged in a process of proactive biodiversity • promoting a ‘one-stop shop’ approach in order to ensure land-banking with partners in the Dassenberg coastal corridor that information is available to support businesses; and (part of the Atlantis industrial incentives scheme) to facilitate development within the Atlantis urban edge by providing • reducing the complexity and cost of doing business with biodiversity offsets. the City. The City, together with Province and the Department of Activa – building the entrepreneurship support Trade and Industry, initiated a feasibility study on possibly system declaring Atlantis a special economic zone (SEZ). This is part The City implemented the Cape Town Activa (CTA) strategy of a national programme intended to support and accelerate in May 2011 to stimulate entrepreneurship and business industrial development in targeted regions by the provision activity in the local economy. CTA ’s strategic goals are to: of special measures to develop targeted industrial capabilities • stimulate the creation of locally owned businesses by and attract targeted foreign and domestic direct investment. linking entrepreneurs with resources, capital, skills and The designation of Atlantis as an SEZ could facilitate further opportunities; investment, which could include general or specific industrial • develop human capital in order to address the needs infrastructure as well as technical workforce and business of the business community (e.g. innovation support, support services focused on a particular sector. small-business skills development, career support and Working with Wesgro to attract investment employment placement programmes); and The City’s support of Wesgro’s investment promotion • make Cape Town a more competitive business programme is aimed at attracting direct investment and environment by providing better support to incubate promoting the expansion of existing investment projects. and grow local business and attract others. In the year under review, Wesgro’s investment promotion In the 2013/14 financial year, CTA accomplishments included services resulted in the attraction of R722 400 000 in direct the following: investments, and the creation of 468 jobs. • More than 19 000 clients were served through the These investments were facilitated in electronics, manufacturing, Enterprise Working Group partner organisations’ walk- media/advertising and renewable energy. Wesgro also facilitated in centres of The Business Place in Cape Town, Philippi, the training of 96 companies and entrepreneurs in the Exporter Khayelitsha and the Small Enterprise Development Development Programme (EDP2), with an emphasis on building Agency (SEDA) in Bellville. the competitive capacity of businesses to export or expand their current exports. In addition, 270 companies and entrepreneurs • More than 2 300 people participated in enterprise were trained in EDP3, which is geared at established exporters skills workshops undertaken by or in conjunction with who are actively engaged in particular markets and are looking to Enterprise Working Group partner organisations. expand into new ones. • Altogether 164 new businesses were registered.

40 INTEGRATED Annual Report | 2013/14 • More than 1 750 people participated in job readiness applications. skills programmes. New Cape Town zoning scheme proves more • The Atlantis Dreamworker job placement project efficient registered 1 228 job seekers, and secured As part of the City’s efforts to build an opportunity city 2014 1 292 temporary and permanent job placements. where investments will grow so that jobs can be created, a • The online portal www.capetownactiva.com received new Cape Town Zoning Scheme (CTZS) was implemented over 24 500 hits from 113 countries. in 2013, after having been approved by the Western Cape CAPITAL DESIGN WORLD MEC for Local Government, Environmental Affairs and In the year under review, the City’s Activa initiative also Development Planning. implemented an entrepreneurship and employment support ecosystem to provide access to shared information and to align The new scheme saw the repeal of the 27 different and products, tools, programmes and events through a one-stop disparate legacy zoning schemes previously used to regulate online portal and telephone number. These included launching land use across the city, and the adoption of a new Cape Town and promoting the job seeker poster in August 2013 and the zoning map, which forms part of the scheme and records the business development support map in January 2014 to link development rights attached to all land in Cape Town. OVERVIEW OF citizens to the most suitable support organisations. In its first year of implementation, the new zoning scheme has THE CITY OF CAPE TOWN In partnership with various stakeholders, Activa was able to proven 26% more efficient than the old schemes. Previously, promote the training, support programmes and opportunities a third of all building plans required a departure in order to of more than 290 public, non-profit and privately funded complete the approval process. Thanks to the new zoning support organisations and service providers in Cape Town. scheme, only a quarter of plans now require such departures. This has assisted in significantly reducing approval times. Programme 1.1(e): Planning and regulation Further opportunities for streamlining and improvement are programme being explored. Creating opportunities for development The single zoning scheme is an essential component of AND RISK MANAGEMENT RISK AND

The City is committed to encouraging and enabling the the City’s strategic focus to become an opportunity city. In COMPLIANCE GOVERNANCE, development of Cape Town’s built environment. During conjunction with the new CTSDF and district spatial plans, the period under review, many of the City’s development the new zoning scheme now constitutes one of the vital application processes were checked and streamlined. The cornerstones of Cape Town’s rationalised, policy-driven 2013/14 financial year saw 83,64% of building development land use management system. It serves as a mechanism applications submitted to the City finalised within the agreed to implement the spatial vision outlined in the CTSDF, and timeframes (against a target of 82%). allows the City to respond appropriately and effectively to the challenges and needs of its citizens in an innovative and 2012/13 The number of building plans submitted to Council increased sustainable way. significantly over the past three years from 23 769 in 2011 to REVIEWPERFORMANCE 28 607 in 2013. For the same period, the value of building The City is also the first municipality that commenced with plans approved by the City increased by 52%. the drafting of a Municipal Planning By-law to contribute to new planning law reform processes at national and To help meet the steadily growing demand, the City provincial level. implemented a new electronic management system for the submission of development applications. Known as the In addition, the City has approved an Urban Design Policy development application management system (DAMS), it and, in support of this, a Tall Buildings Policy. The intention is allows for plans to be submitted electronically on a flash drive to guide the design of private and public-sector developments or USB memory stick, as well as facilitates online payments. so that they help build a city of high-quality design and public While still in its infancy, DAMS is expected to markedly improve spaces. These policies are used as guidelines in discussions turnaround times for the development proposal process. with stakeholders in Cape Town’s development. DEVELOPMENT ORGANISATIONAL The next phase of DAMS, or the DAMS deployment, involves For more detail on the new CTZS, visit http://www.capetown. the inclusion of web submissions and online tracking of gov.za/en/Planningportal/Pages/Zoningscheme.aspx. ECONOMIC SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL

The City recognises that entrepreneurs are the backbone of Cape Town’s economy, and hold the greatest potential for job creation. APPENDICES

INTEGRATED Annual Report | 2013/14 41 Programme 1.1(f): Development of a ‘green’ • monitor the performance of the approved service The City believes that economy providers; and broadband connectivity During 2013/14, a framework for the City’s approach to the green • undertake quality control. is fundamental to economy was developed and accepted by the economic cluster. This is managed by a dedicated project management team creating an enabling The main focus of the green economy framework is to move the established for the programme and hosted within the environment for City towards the development of a low-carbon, resource-efficient Environmental Resource Management Department. Since economic growth, and socially inclusive economy. In working towards a greener its launch in November 2013, 20 solar water heater service development and economy, the City aims to utilise economic opportunities by providers have been accredited by the City. These service inclusion. promoting and facilitating the development of green industries providers have installed more than 2 345 solar water heaters. in Cape Town, marketing our competitive advantages, and This has contributed more than R42 million to the economy developing ecotourism. Additionally, the City aims to reduce and has created 67 job years of employment. environmental risks, thus protecting the economy from the impact of natural hazards (such as extreme weather events), as Recognised for sustainability success – In recognition of its well as to pilot the implementation of alternative green service various environmental and social sustainability efforts, the City delivery mechanisms and technologies, where appropriate. In all garnered a number of awards in the year under review, including: of these activities, job creation will be a key driving factor. The National Department of Public Works’ Kamosa Award – This Key green economy projects in 2013/14 include the following: recognises excellence in the roll-out of EPWP. The award, which was related to environmental work, was in the category ‘Environment Hout Bay dune management – The historical dune system and Culture Sector, Best Metropolitan Municipality’. Significant in Hout Bay has been affected by urban development and, as achievements that were recognised included: such, is encroaching on private property and City infrastructure, posing a threat to those assets. This project aims to rehabilitate • The Kader Asmal River Cleaning Project that saw more the dune system through reshaping, planting and stabilisation, than 2 300 work opportunities created and included thereby reducing the negative impact on the Hout Bay the clearing of alien vegetation and river cleaning. The community, creating employment and restoring the beach to a project was also featured on Carte Blanche for its success functional community recreational asset. A rehabilitation plan in ensuring the return of flamingos to the Black River. has been developed and is currently undergoing the required • The Area Cleaning Project created more than 10 000 environmental authorisation process. work opportunities. The Eskom eta Awards – The City’s Electricity Savings Invasive alien species clearing programme – Invasive plant Campaign was joint winner in the ‘Energy Efficiency Awareness’ species create a number of risks in the communities where they category, demonstrating the administration’s commitment to occur, such as increasing flood and fire risk, providing shelter building a sustainable and energy efficient city. for criminal activities, and significantly reducing indigenous biodiversity. The City’s invasive plant species clearing programme, WWF Global Earth Hour Capital – This was awarded to which targets terrestrial and aquatic species, is a joint initiative Cape Town in recognition of the City’s innovative actions on between a number of departments led by the Environmental climate change and its dedication to pursuing the goal of a Resource Management Department. In the year under review, this sustainable urban environment. programme created more than 70 000 job opportunities. Programme 1.1(g): City Development Strategy Solar water heater programme – The City has set up an implementation innovative programme to: Transversal working groups have been established in the • endorse approved service providers of solar water heaters; social and economic clusters. These are taking the long-term • promote public solar water heater uptake through strategy and planning work forward, as mandated by the City training, communication and educational campaigns; Development Strategy.

The Hout Bay dune management plan involves reshaping, planting and stabilisation of the dune system affected by urban development.

42 INTEGRATED Annual Report | 2013/14 competition in the internet service provider sector and

OPPORTUNITY CITY OBJECTIVE 1.2 stimulating economic growth in the Western Cape private sector. PROVIDE AND MAINTAIN ECONOMIC AND SOCIAL INFRASTRUCTURE TO ENSURE INFRASTRUCTURE- In April 2014, the City started to enter into third-party service provider agreements with licensed telecommunications service

LED GROWTH AND DEVELOPMENT 2014 providers. This is a significant step forward in realising the Programme 1.2(a): Fibre-optic network City’s vision of facilitating access to a high-speed broadband programme network. In addition to being highly beneficial to those areas CAPITAL DESIGN WORLD Securing economic growth through technology that are currently not well served with broadband connectivity investment by service providers, it will also bring sustainable WiFi access International experience also proves that affordable bandwidth to previously underserviced communities and help drive is one of the main factors supporting investment and economic economic growth and development. It forms part of the City’s growth in developing countries. broader commitment to building an opportunity city where progress is made possible for all residents and businesses. As part of its commitment to building an opportunity city, the City of Cape Town has set aside R222 million over the next Offering WiFi to poor communities OVERVIEW OF three years towards the R1,3 billion required for the proposed The City’s fibre-optic cables provide the backbone of wireless THE CITY OF CAPE TOWN roll-out of broadband infrastructure throughout the metro. networks now being tested in Khayelitsha and Mitchells Plain. This is in addition to the R51 million allocated and spent in This project has been developed using the findings of the the past financial year. feasibility study funded by the United States Trade and The City’s initial focus in rolling out this network has been Development Association. It builds on the success of the to both reduce telecommunication costs and improve high- City’s Smart Cape project, which provides free internet access speed converged services such as data, voice and video to at 102 public libraries throughout the metro. Today, the Smart municipal facilities. Cape project has expanded to provide WiFi internet access in public buildings, and boasts more than 300 000 users.

Phase 1 of the City’s broadband network completed MANAGEMENT RISK AND During the year under review, the first phase of the City’s Further WiFi projects are being planned to make the internet COMPLIANCE GOVERNANCE, broadband project was completed with a total of 350 km of more accessible to the citizens of Cape Town. fibre-optic cable installed in the City’s own duct network. Programme 1.2(b): Maintenance of Significant milestones of phase 1 included: infrastructure • 90 City buildings connected via broadband fibre; One of the key areas of expenditure that differentiates the City

of Cape Town from other South African municipalities is that 2012/13 • a total of 25 City clinics connected by self-provisioned this metro prioritises repairs and maintenance. high-speed telecommunications services – either fibre- PERFORMANCE REVIEWPERFORMANCE optic or wireless; This makes a visible difference in Cape Town, primarily in terms of roads and utilities infrastructure. In this regard, the • 12 switching rooms constructed and operational; and City spent a record R2,91 billion on repairs and maintenance • 103 City buildings connected via self-provisioned in the 2013/14 financial year. microwave links. City takes top utilities award The network also enhances the City’s working partnership with Province, with 45 of Province’s buildings now connected The City of Cape Town was named the top municipality in via live and fully operational broadband fibre-optic cables. the 2014 African Utility Week awards. This award is given to the municipality or metro in South Africa that has come out The high capacity of the network has allowed high-bandwidth tops in improving service delivery, increasing its capacity ORGANISATIONAL DEVELOPMENT ORGANISATIONAL services, such as distributed use of highly sophisticated City to deliver services, and demonstrating cost minimisation resource management systems as well as video conferencing through the application of turnkey solutions or increased to be introduced. revenue collection. A panel of judges comprising leaders To date, the City has saved over R25 million per annum on in the utilities industry from across Africa rated the City internal telecommunications charges. These savings are higher than any of the other four nominated metros. being reinvested to fund the further expansion of the network. In nominating the City for this award, both Eskom Phase 2 of the project will see the fibre-optic infrastructure and a private entity from the water sector lauded the extended throughout the Cape Town metropolitan area, administration’s exceptional infrastructure planning over connecting more than 400 public buildings, including clinics, the short, medium and long term, as well as its financial ECONOMIC SUSTAINABILITYECONOMIC libraries and administrative centres. management, water savings management and electricity AND PERFORMANCE FINANCIAL provision. Harnessing spare broadband capacity Beyond the key internal government objective of the Water and sanitation infrastructure asset management broadband programme, namely to provide fibre-optic Investment continues to be channelled towards addressing infrastructure to areas that are not commercially viable for and overcoming maintenance needs, such as the replacement the private sector, spare capacity rendered by the broadband

of ageing pipelines and the upgrade of treatment and STATEMENTS network is being made available to third-party licensed

pumping plants. The City is committed to developing, FINANCIAL ANNUAL network operators. This enables businesses to utilise high- implementing and maintaining tools and business processes speed telecommunications infrastructure for access to that promote a smooth, seamless and responsive experience converged services and internet connectivity. for the consumer. In terms of these commercial interests, the City is negotiating with a range of internet service providers with a view to enabling Programme 1.2(c): Investment in infrastructure

smaller operators to enter the market, thereby generating The City prioritises the allocation of resources to a strategic APPENDICES

INTEGRATED Annual Report | 2013/14 43 infrastructure asset management plan and asset register for services and transport. The allocation of just more than The City’s 2014/15 capital all municipal infrastructure, both above and below ground. R4,517 billion represents 72,7% of the total budgetary expenditure budget To this end, a comprehensive public infrastructure plan is allocation for the 2014/15 financial year. being developed, which will set out a consistent, long-term is focused extensively In the 2014/15 budget, the renewal of existing assets equates development path by using public infrastructure investment on infrastructure to R2,638 billion, or 42,5% of the total 2014/15 capital and partnerships as platforms and catalysts to enable development, such budget, while new assets represent R3,573 billion, or 57,5%. economic growth. as utility services and Bulk water infrastructure investment transport. Infrastructure investment for sustainable development The growth areas identified by the City require capital Infrastructure investment remains an important emphasis for investment in infrastructure, while densification, as a future the City. This includes determining investment and growth spatial strategy, is provided for in the design of long-term trends to ensure that adequate infrastructure is provided in capacity upgrades. The City will be implementing its bulk water areas of high growth. The City continues to act as catalyst by augmentation scheme (BWAS) in phases, of which the first investing in suitable economic and social infrastructure to phase, the Muldersvlei reservoir, is currently being designed. support and further stimulate economic development. When fully implemented, the scheme will increase the potable The City is developing a life-cycle management system for water treatment, bulk storage and bulk conveyance capacity of the infrastructure assets. The infrastructure asset management City’s water supply system, thereby increasing the overall system programme (IAMP) is a corporate project that is aligned with capacity and boosting supply to development areas. The timing the National Department of Cooperative Governance and of the development of the required bulk water infrastructure National Treasury’s requirements to establish, implement depends on the growth in water demand and the effectiveness of and use a comprehensive infrastructure plan. the water demand management (WDM) strategy. In the year under review, the City made significant progress with investing in infrastructure risk areas in Cape Town. The Wastewater infrastructure investment City has progressively reduced areas at high risk in the short There are 27 wastewater treatment works (WWTWs) in Cape term in terms of demand on infrastructure – utility services Town. The recent issuance of new licensing requirements by in particular – and continues to ensure that the infrastructure the Department of Water Affairs (DWA) means that a number of investment programme is aligned with the needs of new these will require upgrades. A number of the works, including affordable housing projects. Borcherds Quarry, Potsdam and Bellville, are operating above their hydraulic and load design capacity. Processes have been initiated to address these challenges, with upgrades and capacity extension planned for various facilities. Some of the recent changes to DWA’s wastewater quality requirements will be challenging to meet, and the City has approached the Department in this regard. For the 2013/14 financial year, the majority of wastewater projects were aimed at increasing treatment capacity, improving processes and raising levels of effluent quality. Reticulation infrastructure investment The City has undertaken an accelerated programme to improve the replacement of water distribution network mains, with a particular focus on areas with a higher incidence of pipe bursts. In the 2013/14 financial year alone, 55 418 metres of water reticulation mains were replaced. This brings the total replaced since 2011/12 to 215 672 metres.

Figure 3.1: Major infrastructure risks within development areas

Targeted investment for infrastructure development In its MFMA circulars (No. 55 and 66), National Treasury has indicated that at least 40% of the total capital budget should be earmarked for the renewal of existing infrastructure, as opposed to building new infrastructure. The City’s 2014/15 capital expenditure budget is focused extensively on infrastructure development, such as utility

44 INTEGRATED Annual Report | 2013/14 initiatives would have on tariffs and the legacy challenge of

full-cost recovery. Current programmes in this regard include: • the Think Twice programme in the Atlantic seaboard, the Southern Peninsula, the Helderberg and northern suburbs, east of Tygerberg Hills, Sea Point, Mouille 2014 Point, Three Anchor Bay, Hout Bay and Camps Bay; WORLD DESIGN CAPITAL DESIGN WORLD • recycling at 25 drop-off facilities; • chipping and composting of garden greens; • recycling and reuse of builder’s rubble at landfill sites; • recycling of paper waste at Council buildings; and • public and schools education and awareness on waste management and minimisation. OVERVIEW OF THE CITY OF CAPE TOWN

City’s award-winning facility transforms waste into a useful resource The City’s ultra-modern, award-winning Kraaifontein waste management facility is the first integrated recycling facility in South Africa, and sorts 100 tonnes of dry recyclables a day. City’s new, cutting-edge valve technology The facility includes a transfer station, where waste is a first in Africa compacted into closed containers for transfer to landfill;

a public drop-off site; a materials recovery facility to sort MANAGEMENT RISK AND In October 2013, the City unveiled four new, cutting- COMPLIANCE GOVERNANCE, dry waste, and an area for chipping green waste. A pilot edge valve-exercising machines aimed at ensuring a waste-to-oil plant, supported by the Japanese Investment more reliable water supply network, thereby reducing Agency, will be installed on the site once the environmental inconvenience to residents and improving service delivery. impact assessment has been completed. The City’s procurement of these state-of-the-art valve- Through collaborations with the public and private sector, exercising machines from America was a first for Africa and the aim of the facility is to divert as much waste as possible will enable the City’s Water and Sanitation Department 2012/13 from landfill sites and to make recycling economically to locate, identify, clean, exercise and, where necessary, viable. The benefits of these collaborations are evident repair or replace valves. This will maximise the lifespan REVIEWPERFORMANCE in the facility’s success, and have been underpinned by of the infrastructure, and is anticipated to save the City the creation of a shared sense of responsibility towards millions of rands through pipe burst prevention and our environment and an understanding of the role that quicker burst reaction times. everyone can play in shaping a greener future. The City has approximately 175 000 valves in its water The reduction of the waste stream following ‘at source network. These valves are used to isolate parts of the separation’ (dry recyclables separated at homes and system, allowing for construction, maintenance or repairs collected separately from general waste) and the sorting to be done. In the previous financial year, the City recorded of recyclables into the various components of value at the over 3 300 pipe bursts. The average cost to repair a pipe materials recovery facility have resulted in substantial cost burst is R25 000. As a result of their infrequent use, valves

savings on transporting waste to landfill sites. Diverting DEVELOPMENT ORGANISATIONAL tend to seize up, making them difficult to operate at the waste from landfills also increases the lifespan of the City’s most critical of times. remaining landfill sites, which are filling up fast. Solid waste infrastructure asset management The project was the co-winner of the South African The rehabilitation of the City’s disused, full landfills and Institution of Civil Engineering’s national award for dumps continued in 2013/14, as required by the MFMA and excellence in civil engineering in 2012. operating permit conditions. Rehabilitation of the Swartklip landfill is now 75% complete, and work has commenced with Addressing the challenge of landfill airspace the rehabilitation of the former Kraaifontein landfill. There is limited airspace available at the City’s three operating

landfills. The City has managed to extend the closure of the SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL The City also continued to focus on replacing ageing waste Bellville landfill until 2018. A basic assessment process has collection vehicles with the aim of ensuring long-term service also been initiated to obtain authority to increase the capacity delivery improvements. Approximately R84 million (or 99,2% of the Vissershok landfill. of capital expenditure) was spent on vehicle replacement for the year under review – all within the replacement policy and The process of identifying a new regional landfill site according to plan. continues and – following an extensive technical process that commenced in 2000, a subsequent scoping and a Committed to waste minimisation supplementary environmental impact assessment process STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL Continued waste minimisation interventions are required on two shortlisted sites – a record of decision was issued to meet agreed national and City targets. This requires the during 2013 in favour of a site near Kalbaskraal. An appeal development of both financial and non-financial strategic has, however, been received, which needs to be resolved partnerships with business, industry and other sectors before the work commences. Assuming the completion of of society to commission large-scale waste minimisation the appeals process, the regional landfill should be able to

initiatives in an effort to negate the impact that recycling receive waste by the end of 2018. APPENDICES

INTEGRATED Annual Report | 2013/14 45 Creating Opportunities Through Consistent Service Delivery ELECTRICITY SERVICES The City of Cape Town is the electricity service authority for the entire Cape metropolitan region. Its service providers are the City of Cape Town’s own Electricity Services Department, Eskom and AECI. Electricity investment in 2013/14

Table 3.4: Operating repairs and maintenance by expenditure item 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Audited Audited Audited outcome outcome outcome Budget Budget Budget Description R’00 R’00 R’00 R’000 R’000 R’000 Total operating revenue (8 807 457) (9 726 254) (10 240 119) (11 070 430) (11 909 088) (12 808 943) Staff costs 622 056 675 862 718 824 905 043 968 979 1 052 713 Bulk services 5 385 000 6 097 891 6 283 113 6 678 300 7 173 500 7 705 400 Contracted services 35 069 31 050 36 376 35 470 44 310 46 702 Other 1 802 064 1 931 874 1 794 928 2 267 354 2 438 373 2 621 172 Total primary cost 7 844 189 8 736 677 8 833 241 9 886 167 10 625 162 11 425 987 Secondary cost 1 066 859 1 048 005 1 085 874 1 184 263 1 283 926 1 382 956 Total primary and secondary cost 8 911 048 9 784 682 9 919 115 11 070 430 11 909 088 12 808 943

Access to electricity services is achieved through the demand-driven capital programme funded through developers’ contributions for non-subsidised housing. Subsidised housing is funded through the electrification plan. Developers’ contributions and private sector – actual and budget

Table 3.5: Expenditure and budget for developers’ contributions and private sector 2008/9 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Year R’000 000 R’000 000 R’000 000 R’000 000 R’000 000 R’000 000 R’000 000 R’000 000 R’000 000 R’000 000 R’000 000 Budget 149,7 125,5 83,3 68,0 79,0 76,8 78,6 82,3 87,9 94,3 99,9 Actual 146,5 115,2 80,3 65,7 70,3 69,5 – – – – –

Key projects and initiatives in 2013/14 • Ongoing electrification • Koeberg Road switching station • Gugulethu main substation upgrade • Athlone-Philippi overhead line undergrounding

Key medium- and long-term strategic objectives • Continuity of supply to meet customers’ needs • Addressing increased theft and vandalism • Addressing tariff increases by key suppliers • Infrastructure development to meet city growth • Continued refurbishment and replacement of existing assets • Customer service to remain a top priority

The upgrade of the Gugulethu substation was one of the key projects in the year under review.

46 INTEGRATED Annual Report | 2013/14

2014 WORLD DESIGN CAPITAL DESIGN WORLD OVERVIEW OF THE CITY OF CAPE TOWN AND RISK MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, 2012/13 PERFORMANCE REVIEWPERFORMANCE ORGANISATIONAL DEVELOPMENT ORGANISATIONAL ECONOMIC SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL

Its electrification programme speaks directly to the City’s mandate to deliver core basic services. APPENDICES

INTEGRATED Annual Report | 2013/14 47 WATER AND SANITATION SERVICES Altogether 99,6% of Cape Town’s water supply is derived The City’s water and sanitation infrastructure also includes from six dams, namely Voëlvlei, Theewaterskoof and Berg 12 water supply treatment works and a water supply River (owned and operated by DWA), and Wemmershoek and reticulation network of approximately 10 353 km. The City Steenbras Lower and Upper (owned and operated by the City). also has 82 water pump stations and 120 water reservoirs. The total capacity of these six dams is 898 300 million kilolitres. The wastewater infrastructure consists of 27 wastewater Some other, minor dams owned and operated by the City make treatment facilities, an 8 971 km sewer reticulation network up the outstanding 0,4% of the total system capacity. and 377 sewer pump stations.

Cape Town’s water and wastewater infrastructure

Dams • Cape Town’s drinking (potable) water is collected in 13 dams located throughout the wider metropole, and two wellfields near Atlantis.

• Together, the dams have a maximum capacity of 898 million m3.

MAIN SUPPLY Water treatment plants AND reservoirs • The dam water is treated at 12 plants. • Once treated, water is piped to a system of reservoirs that feeds the water distribution network. • The water is among the best in the world, as evidenced by the many Blue Drop awards won by the City. RETICULATION

Municipalities

Wastewater treatment plants Commercial AND reservoirs • The City operates 27 wastewater treatment Residential facilities and three marine wastewater disposal outfalls. • Fisantekraal plant uses state- of-the-art ultraviolet disinfection Industrial tools and is geared as a ‘zero discharge’ plant, as its treated END USER/CUSTOMER effluent is used for irrigation. MINING • The quality of treated wastewater is monitored

WASTEWATER RETICULATION NETWORK RETICULATION WASTEWATER on a weekly basis to ensure compliance with national standards.

Treated wastewater Main disposal network reuse network

Disposal of treated Reuse of treated wastewater wastewater

Figure 3.2: Saving water is a way of life for the City of Cape Town

48 INTEGRATED Annual Report | 2013/14 Highlights in 2013/14

• Won the DWA water sector award for WDM and water • Mitchells Plain wastewater treatment works being conservation initiatives. upgraded to increase capacity.

• The average Green Drop score for the quality of the • Purchased specialist vehicles for closed-circuit 2014 City’s wastewater treatment facilities and functioning television (CCTV), global positioning system (GPS) and was 89,23% (according to the 2013 DWA report). This network life-cycle programmes. represents a substantial improvement on the 2011 CAPITAL DESIGN WORLD score of 86,80% and the 2009 score of 82,00%. • Good progress made with the Bellville WWTW membrane plant. • A total of 55 418 metres of water reticulation mains have been replaced, bringing the total replaced since • Various reservoirs upgraded, with the planned 2011/12 to 215 672 metres. construction of the new Contermanskloof reservoir gaining momentum. • A total of 29 836 metres of sewer reticulation mains

have been replaced, bringing the total replaced since • Developed an integrated IT repository for all Water and OVERVIEW OF Sanitation Department operational data.

2011/12 to 87 470 metres. THE CITY OF CAPE TOWN • Scientific Services continues to maintain its ISO 17025 • Extensive project to capture, update and verify Water accreditation status through the provision of credible and Sanitation network geographic information water sampling, laboratory analysis and scientific systems (GIS) information. To date, approximately information to the City of Cape Town. 35 000 departmental engineering drawings have been scanned and captured. • Introduction of the very first Assistive Technology Laboratory (AT-LAB) for wastewater treatment monitoring • The upgrading and positioning of engineering at the Athlone wastewater treatment plant. workshops closer to City clients, thereby reducing turnaround times and enhancing service delivery.

• The Technical Operations Centre maintained its SANS MANAGEMENT RISK AND 990 certification, being the first and only call centre in • Introduction of mobile dispatch command and control COMPLIANCE GOVERNANCE, Africa to have received this certification. functionality in operations. • The Department of Water and Sanitation was the runner- • Revival of the Research and Development Section in up in the national Eco-Logic water conservation awards. Scientific Services, which will be responsible for the • The Water Conservation Section employed 1 000 scientific research to improve service delivery within

workers from local communities through the EPWP. the City of Cape Town. 2012/13 A group of 30 was trained in the performing arts as a • Expansion of analytical services to include the creative approach to spread the message of saving testing of viruses in biological sciences laboratory REVIEWPERFORMANCE water. A DVD of this performance was developed. and the introduction of polymerase chain reactions Key projects and initiatives in 2013/14 for microbiological analysis. Previously, testing took weeks, but now takes only a few hours. • New sewer line to increase capacity in the northern area is being constructed from Thornton to Langa via • The introduction of live ‘intranet productivity’ monitoring Epping Industria as part of a multi-year project (total screens at Scientific Services has improved turnaround cost: R150 million). times for issuing water and air quality results. ORGANISATIONAL DEVELOPMENT ORGANISATIONAL ECONOMIC SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL

Once completed the De Grendel reservoir will provide 48 hours’ worth of potable water storage capacity. APPENDICES

INTEGRATED Annual Report | 2013/14 49 Water and wastewater infrastructure investment The City received a The City’s capital expenditure on water services is as follows: platinum Blue Drop award for its consistent Table 3.6: City’s capital spend on water services excellent performance for four years and remains 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 in the top-performing Audited Audited Audited group of water service outcome outcome outcome Budget Budget Budget authorities. Description R’000 R’000 R’000 R’000 R’000 R’000 Hydraulic networks 288 981 282 550 356 036 11 000 000 11 000 000 12 000 000 Hydraulic pump stations 13 045 13 045 33 574 500 000 10 000 000 – Dams, reservoirs and tanks 10 627 9 142 49 385 4 000 000 6 000 000 – Treatment works 223 193 222 941 168 276 – – – Support infrastructure 69 311 75 994 92 776 – – – Total 605 157 603 671 666 473 15 500 000 27 000 000 12 000 000

Key medium- and long-term strategic objectives • To achieve 95% wastewater effluent quality This represents a steady improvement on the 2011 score of 86,80% and the 2009 score of 82%. Ten of the WWTWs • To reduce unaccounted-for water to 18,7% in the next scored higher than 90%, including Cape Flats, Macassar- five years Strand, Kraaifontein, Scottsdene, Zandvliet, Wildevoëlvlei • To continue to provide basic or emergency sanitation and Parow, thereby qualifying for Green Drop status. services where required and legally possible to all residents of the city City awards and accolades As proof of the City being a world leader in water management, • To continue to provide basic water to all residents in the city it has: • To achieve 90% customer satisfaction levels in all its services • received the Engineering Council of South Africa’s • To minimise river systems pollution by reducing sewage award for the Woodhead dam; overflows by 20% • received two awards from the South African Society for • To improve revenue collection to 96% Trenchless Technology for innovative applications with Ensuring water quality regard to reticulation; The City consistently excels in DWA’s Blue Drop awards • supplied water to Beaufort West during droughts, in programme. As at June 2014, the City’s score was an impressive partnership with a bulk water tanker company; 98,14%. This was the highest score in the Western Cape and • participated in various South African Local Government the sixth-highest score in South Africa. The City also received Association benchmarking programmes; a platinum Blue Drop award for its consistent excellent performance for four years (2009 – 2012), and remains in the • participated in International Water Week with the top-performing group of water service authorities in South Africa. United Nations; and According to DWA’s latest Green Drop report (for 2013), • hosted various international delegations from the Netherlands, the average Green Drop score, which measures the quality Sweden, China, Southern African Development Community of the City’s wastewater treatment facilities, was 89,23%. (Botswana, Somalia, Malawi), Romania and India.

Faure Wastewater Treatment Plant is one of 27 such facilities serving Cape Town.

50 INTEGRATED Annual Report | 2013/14 WASTE The City of Cape Town subscribes to the waste management hierarchy of the National Waste Management Strategy (NWMS) as a way of minimising waste sent to landfills. This waste management hierarchy can be visually depicted as shown alongside.

• Goal 2: Ensure the effective and efficient delivery of 2014 waste services

• Goal 3: Grow the waste sector’s contribution to the CAPITAL DESIGN WORLD green economy Highlights for 2013/14 • Implementation of landfill gas project in order to reduce greenhouse gas emissions to meet climate change objectives. The City is in the process of registering these landfill gas projects with the United Nations Framework Convention for Climate Change. OVERVIEW OF THE CITY OF CAPE TOWN • Upgraded and replaced key solid waste management fleet.

Figure 3.3: Waste management hierarchy of the • Rehabilitated old landfill sites at Swartklip and Faure. National Waste Management Strategy • Constructed and commissioned a new northern region landfill site. The objectives of the National Environmental Management: Waste Act (59 of 2008) are to protect health, well-being and Key projects and initiatives in 2013/14 the environment by providing reasonable measures for: • Implemented an equitable refuse collection service for

backyarders at housing rental units on City-owned land. MANAGEMENT RISK AND

• minimising the consumption of natural resources; COMPLIANCE GOVERNANCE, • avoiding and minimising the generation of waste; • Commenced with the infrastructure development of a refuse transfer station and drop-off facility at the • reducing, reusing, recycling and recovering waste; and Bellville South landfill. • treating and safely disposing of waste as a last resort. • Commenced with a feasibility study for the The goals of the National Waste Management Strategy goals establishment of a refuse transfer station in the are as follows: Helderberg area. 2012/13 • Goal 1: Promote waste minimisation, reuse, recycling • Provided and expanded garden greens management at PERFORMANCE REVIEWPERFORMANCE and recovery of waste drop-off facilities, including chipping and composting. Waste infrastructure investment Table 3.7: City’s investment in waste infrastructure

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 Audited Audited Audited outcome outcome outcome Budget Budget Budget R’000 R’000 R’000 R’000 R’000 R’000 Disposal sites 75 082 84 995 61 173 297 993 200 000 143 000 ORGANISATIONAL DEVELOPMENT ORGANISATIONAL Vehicles and plant 152 418 101 250 64 500 111 000 59 000 59 000 Other 3 153 20 327 13 832 27 881 50 005 35 004 Total 230 653 206 572 139 505 436 874 309 005 237 004

Key medium- and long-term projects • Rehabilitation of historical landfill sites such as Atlantis and Waterkloof – both of these projects are under way. In addition, applications are being made for closure licenses for 11 priority historical sites. • Construction of drop-off facility for hazardous household waste at the Athlone refuse transfer station.

• Completion of two mini-materials recovery facilities. SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL • Construction of the transfer station and drop-off facility at the BellvilIe waste management facility.

City wins Recycling Municipality of the Year award In 2014, the City of Cape Town was awarded the PETCO Recycling Municipality of the Year award in recognition of its ongoing efforts in waste minimisation.

Some of the achievements that contributed to Cape Town earning the award included: STATEMENTS – being the first municipality to implement kerb-side – the active recyclers database; FINANCIAL ANNUAL collection. The City now has six split-bag pilot recycling – commissioning of a study on full-cost accounting for programmes and two materials recovery facilities; the City’s landfill sites; and – the successful operation of 25 public waste drop-off sites; – active and successful waste management awareness – the implementation of the Integrated Waste Exchange; campaigns, including the Waste Wise, Think Twice and – the work of the Solid Waste By-law enforcement units; Smart Living programmes. APPENDICES

INTEGRATED Annual Report | 2013/14 51 STORMWATER • Continuation of the City’s successful winter readiness programme to reduce the risk of flooding for affected During the 2013/14 financial year, the roll-out of the City’s communities by ensuring effective maintenance of stormwater quality implementation plan continued, and stormwater infrastructure. In addition to the winter significant progress was made with regard to determining the readiness programme, the Transport for Cape Town roles and responsibilities of law enforcement authorities to (TCT) Asset Management and Maintenance Department support pollution management. continued to provide temporary employment opportunities The City’s efforts to manage pollution are reaping rewards, as for the unemployed through the implementation of labour- evidenced by the reappearance of flamingos and otters in the intensive projects under the auspices of the EPWP. This has Salt River catchment areas over the past year. resulted in a major improvement in the functionality of the stormwater systems across the city. Challenges continue to be experienced in the provision, operation and maintenance of sanitation infrastructure in • Implementation of infrastructure upgrades and informal settlements, with some residents continuing to object the provision of new infrastructure to enable new to the use of portable toilets. Vandalism of sewage-related development, including: infrastructure also remains a key problem and has a detrimental – Stormwater master planning for the development effect on the stormwater quality of the respective catchments. area adjacent to the Sir Lowry’s Pass River is nearing Stormwater infrastructure completion. The City’s stormwater infrastructure network requires large – Completion of the sections of canal from Sunningdale capital inputs to deal with historical inadequacies. Upgrades to Drive to Berkshire Boulevard and from Abington Road existing infrastructure and the provision of new infrastructure to Grove Avenue as part of the provision of new bulk are planned to help reduce flood risk, particularly in vulnerable stormwater for Table View North. communities, as well as to enable new development. – Completion of the final section of the Lotus canal To this end, a number of initiatives were undertaken during widening. The only remaining portion of the the period under review. These include: overall Lotus upgrade is the expansion of the Edith Stephens detention pond. The environmental impact • Implementation of formal flood risk reduction and assessment of this portion is under way. This project mitigation programmes focusing on vulnerable will enable ongoing development in the vicinity of communities, such as: Cape Town International Airport, while managing any – Flood alleviation measures in the Lourens River. resultant potential flood risks in Gugulethu, Nyanga The severe flooding in Somerset West in November and other communities further downstream. 2013 gave renewed impetus to this work. A thorough • Metro-wide stormwater master planning. Tender analysis of the event was carried out, and the flood documents for this study have been prepared and now alleviation measures were revised to take into await funding. account the findings as well as to propose short-term measures to avoid further immediate threats. The • A project to build skills and capacity as well as formulate a latter measures are well under way, having received programme for monitoring, operation and maintenance national disaster funding. of sustainable drainage systems is awaiting funding. – General minor stormwater projects identified • Work continued on the development of a problem- throughout the city, as necessary, to deal with solving methodology for the upgrade and sustainability localised flooding. of infrastructure in informal settlements.

The City’s stormwater infrastructure network requires large capital input to deal with historical inadequacies and damage caused by floods.

52 INTEGRATED Annual Report | 2013/14

2014 WORLD DESIGN CAPITAL DESIGN WORLD OVERVIEW OF THE CITY OF CAPE TOWN

The City of Cape Town has created more job opportunities via the EPWP than any other city in South Africa. AND RISK MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, Programme 1.2(d): Expanded Public Works Social sector: Best municipality programme (EPWP) Highlights that contributed to this award included: The City has committed itself to the outcomes of the EPWP, • the creation of 4 000 work opportunities through and seeks to go beyond these outcomes to give effect to its innovative projects; strategic focus areas of turning Cape Town into an opportunity and caring city. The City has confirmed its commitment to • the employment of 500 street people to clean 2012/13 EPWP by: cemeteries and kramats; PERFORMANCE REVIEWPERFORMANCE • adopting job creation targets aiming to create 150 000 EPWP • the employment of 240 home-based carers focusing on work opportunities over the implementation period; delivering services in Manenberg, Heideveld, Nyanga, Khayelitsha, Gugulethu, Atlantis, etc.; • signing the EPWP protocol agreement with the National Department of Public Works; • the training of 100 young people in partnership with the University of the Western Cape, and their employment • signing the annual integrated conditional grant through EPWP; agreement with Public Works; and • the employment of 60 unemployed graduates in social • developing the relevant policy and institutional sciences as part of the City’s drug and substance abuse frameworks for the implementation of EPWP in the programme in communities and schools;

City’s line directorates. DEVELOPMENT ORGANISATIONAL • the training of 240 workers to become trainers on the A total of 38 305 EPWP job opportunities created prevention of domestic violence in communities; The City prioritises the establishment of an enabling economic • the employment and training of 165 workers in the environment in which to attract investment to Cape Town establishment and maintenance of food gardens; and ensure job creation. However, given the socio-economic realities of the country, a significant portion of the population • the cleaning and greening of health-care facilities; and still has difficulties accessing employment opportunities. • sports coaching and after-school programmes. The EPWP is a means of directly addressing this challenge by providing people with a range of job opportunities in various Environment and culture sector: Best

metropolitan municipality SUSTAINABILITYECONOMIC public-sector programmes and projects. AND PERFORMANCE FINANCIAL Significant achievements here include: As a result of the City’s commitment, the number of job opportunities created via the EPWP has increased • the Kader Asmal river-cleaning project, which created significantly to 38 305 – more than any other city in South more than 2 300 work opportunities through activities Africa. In addition to creating work opportunities and helping such as the clearing of alien vegetation and river to directly combat poverty, the success of the EPWP has cleaning. The project was also featured on Carte resulted in a direct improvement in the roll-out of services to Blanche, focusing on the return of flamingos to the Black STATEMENTS all citizens of Cape Town. River; and ANNUAL FINANCIAL FINANCIAL ANNUAL The City’s commitment to, and performance in, supporting the • the area-cleaning project, which created more than EPWP was officially recognised in October 2013 at the National 10 000 work opportunities. Department of Public Works’ Kamosa awards, where it won two of the three awards available. These were as follows: APPENDICES

INTEGRATED Annual Report | 2013/14 53 OPPORTUNITY CITY OBJECTIVE 1.3 Conserving biodiversity: our natural capital During the 2013/14 financial year, the City’s Environmental PROMOTE A SUSTAINABLE Resource Management Department (ERMD) continued to ENVIRONMENT THROUGH THE implement the BioNet (fine-scale conservation plan). This EFFICIENT UTILISATION OF RESOURCES entails implementing various mechanisms to add critical biodiversity areas to the existing protected-areas network. In Programme 1.3(a): Sustainable utilisation of addition, ERMD continues to improve the management of the scarce resources, such as water and energy City’s nature reserves in order to ensure sound management The City is committed to conserving and managing Cape of our natural heritage. Town’s unique biodiversity, while promoting natural areas Notable initiatives during the 2013/14 financial year included: as community spaces that perform a vital ecosystem service as well as a recreational and social function. The social Development facilitation through land banking – The benefits of the biodiversity network include job creation and Atlantis industrial incentive scheme includes a land-banking skills development opportunities, benefitting particularly component. This means that key biodiversity properties the surrounding communities. To this end, a number of key outside the urban edge are proactively purchased and projects and initiatives have been planned for the next five conserved to mitigate the loss of biodiversity remnants years, including the following: within the urban edge and industrial area of Atlantis, thereby facilitating new investment opportunities in the • The proclamation of existing managed areas under the area. This scheme is supported by Province’s Department new National Environmental Management: Protected of Environmental Affairs and Development Planning. This Areas Act. pragmatic approach has great potential, as it facilitates • The completion and adoption of a bioregional plan. In development while ensuring that priority land is added to the the year under review, the technical component of this conservation estate, thereby securing biodiversity resources plan was completed. and the vital ecosystem services they deliver. In 2013/14, approximately 353 ha was acquired for this purpose. • Meeting the Integrated Metropolitan Environmental Policy (IMEP) environmental agenda target of The Dassenberg Coastal Catchment Partnership – The conserving 60% of the biodiversity network (BioNet) Dassenberg Coastal Catchment Partnership (DCCP) is an by 2014. To date, approximately 52% of the BioNet is ongoing initiative of the City of Cape Town, CapeNature, the considered secure. Worldwide Fund for Nature (WWF), the Table Mountain Fund, the Wilderness Foundation, the Cape West Coast Biosphere, • Meeting IMEP environmental agenda targets in respect SANParks, the Western Cape Department of Environmental of invasive alien species. Affairs and Development Planning and the South African National • Continuing to roll out environmental education and Biodiversity Institute (SANBI). In the year under review, the City outreach programmes to increase the public’s ability to has continued to be an important partner helping to develop this access nature reserves and to promote environmental initiative, which aims to create a multi-use conservation area that education and awareness. As part of this, the City will link CapeNature’s Riverlands Nature Reserve with the coast, continues with its environmental capacity-building, and protect critical ecological infrastructure. training and education programme. A sustainable City Metro Southeast Strandveld Conservation Implementation communication strategy and umbrella campaign is also Plan (CIP) – The Metro Southeast Strandveld CIP is a being developed, and will be finalised now that the collaborative City-led project including external conservation City’s recent rebranding process has been completed. partners such as CapeNature, the Western Cape Department • Ensuring continued management of the existing of Environmental Affairs and Development Planning, and conserved areas so that the benefits to the community SANBI. Owing to the urgent need for housing development are enhanced. The integrated reserve management land in the metro southeast, and the rapidly shrinking plans have now been drafted, also taking into account area of endemic and endangered natural vegetation in the the inputs received from local communities. In addition, area, this project was initiated to identify a key set of areas conservation development frameworks are being required to secure biodiversity resources and vital ecosystem developed. services, and to set aside other, less critical BioNet land for development. A framework and set of maps for this • Creating a viable ecological link between Dassenberg plan was developed and approved in 2013/14, and will be Hills and the coast as part of the Dassenberg Coastal implemented in the next financial year. Catchment Partnership. In the year under review, the City purchased Klein Dassenberg (253 ha) as well as Encouraging energy efficiency another 100 ha from the Moravian Church to facilitate The Cape Town solar water heater endorsement programme, development and offset biodiversity in Atlantis approved by Council for implementation from August 2013, Industria. Province has also provided support for the is aimed at facilitating the roll-out of high-pressure solar programme. water heaters across the city. City’s commitment to environmental sustainability In November 2013, the City launched its residential high- earns awards pressure solar water heater programme as part of its ongoing electricity savings campaign. Since this launch, 20 approved In December 2013, the City’s electricity savings campaign service providers have been accredited to install solar water was a joint winner in the Eskom eta awards in the category heaters. These service providers have collectively received ‘Energy-efficiency awareness’. more than 1 153 requests for information and have installed In March 2014, the City was awarded the title of WWF Global more than 2 345 solar water heaters. Since its launch in 2013, Earth Hour Capital. This prestigious accolade recognises the the programme has contributed more than R42 million in City’s innovative actions on climate change, and its dedication solar water heaters to the economy and has created about to pursuing the goal of a sustainable urban environment. 67 job years of employment.

54 INTEGRATED Annual Report | 2013/14

2014 WORLD DESIGN CAPITAL DESIGN WORLD OVERVIEW OF THE CITY OF CAPE TOWN AND RISK MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, 2012/13 PERFORMANCE REVIEWPERFORMANCE The City is committed to conserving and managing Cape Town’s unique biodiversity for the next generation.

Managing the City’s own energy impacts Programme 1.3(b): Water conservation and The City has been steadily retrofitting its own administrative water demand management strategy buildings, fleet, street lights and traffic lights to lead by Reducing water demand and wastage example. It was one the first cities in South Africa to retrofit all its traffic lights with light-emitting diodes, and is now A key priority for the City of Cape Town is the funding of water achieving substantial savings as a result of this initiative, demand strategies (WDSs) to enable planned programmes to be implemented to reduce the demand for, and wastage of, which was completed in 2012. DEVELOPMENT ORGANISATIONAL water across Cape Town. The main programmes and projects The City has completed comprehensive retrofits in 18 large in this regard include: buildings, with another six buildings currently being retrofitted. More than 80 smart meters have been installed in • the water leaks repair programme; most large City-owned facilities, and all retrofitted buildings • the pressure management programme; have been equipped with energy management systems. This will provide comprehensive consumption data and profiles • the roll-out of water management devices; within the facilities, which will be used to improve energy • the treated-effluent reuse programme; management and reduce consumption through behaviour • replacement of broken meters and relocation of other

change and awareness. The City has also embarked on a SUSTAINABILITYECONOMIC series of fundamental energy management training sessions water meters; AND PERFORMANCE FINANCIAL for staff in retrofitted buildings. • continued education and awareness; and In the past year, the City has installed solar photovoltaic systems • the promotion of rainwater harvesting. in a few key buildings, including a 10 kWp system at Gallows Hill Traffic Department, and a 100 kWp system at the new In this regard, some of the City’s key water conservation Electricity Services Department building in Bloemhof. The City efforts in 2013/14 included the following: has taken many steps in reducing the energy consumption of its STATEMENTS

• Major and minor pressure management projects FINANCIAL ANNUAL vehicle fleet through its Smart Driver training interventions as that sustainably reduced system water losses, pipe well as making the switch to more efficient fuels. bursts and internal leaks, while having prolonged the The City is busy establishing an internal energy management reticulation lifespan. This saved the City water and protocol to provide a standardised and uniform framework and money. The current total annual savings achieved on procedure to oversee the implementation of energy-efficient existing projects are approximately 3,73 million m³ of

and renewable-energy management projects. water, which equates to around R31 million per year. APPENDICES

INTEGRATED Annual Report | 2013/14 55 • Retrofitting and leak-fixing in Samora Machel, Company’s Garden in the city centre. This has resulted in In reducing the demand Ravensmead and Fisantekraal. The average water saving substantial potable water savings for the City, as well as for potable water, 13 of achieved with this project was approximately 10 kℓ per financial savings for consumers. month per targeted area, translating into a financial the City’s wastewater A detailed feasibility study is under way, which will deliver saving of between R1,2 million and R1,7 million per treatment plants are able a comparative assessment of water reuse against other year per targeted area. This is over and above ongoing to extract and fully treat potential water resource development options. infrastructure upgrades and maintenance. wastewater. • The water education consumer perception assessment Conserving the city’s water project, which was undertaken by the Water Despite having experienced population growth of more Conservation Section as part of the Mayor’s EPWP than 30% since the 2001 Census, the City of Cape Town project to ensure the application of the most efficient has, through careful management, ingenuity and consumer education and awareness strategy to achieve maximum education, managed to stabilise the demand on the Western water savings. Cape water supply system (WCWSS). Managing this vital resource is a shared responsibility and, through this • Continued improvements to sanitation access and partnership with residents, the annual water demand is now services for the ever-increasing urbanised population, growing at 2,3% instead of the near 4% recorded in the period especially in informal settlements and backyards. just prior to 2001. • Ongoing replacement of piping in water and sewerage The City measures its overall water losses in terms of pipelines networks at an average cost of R1 million per kilometre and connection losses, meter inaccuracies and unauthorised of piping. water consumption. In the year under review, the City Water reuse successfully reduced its overall water loss to 14,5%. This is less than all other metros in the country, which maintain a At present, about 70% of all the water used in Cape Town is combined average water loss of 29,7%. channelled into the city’s sewer networks as wastewater. This wastewater is then treated and either reused (currently Partnering with communities to save water approximately 10% of total wastewater) or discharged into As part of the City’s Water Month involvement and its ongoing the environment as treated effluent (currently 90% of total sustainability education and awareness programmes, wastewater). a total of 230 semi-skilled workers and supervisors, as well Treated effluent is a valuable resource and needs to be as approximately 100 community artists from areas such integrated with the overall process of reconciling water as Langa, Dunoon, Masiphumelele, Delft Symphony Way supply and demand. As at the end of June 2014, the City was temporary relocation area and Enkanini, were educated and discharging approximately 21 357 mℓ of treated effluent employed through the EPWP to educate their communities into the environment every month. This provides significant about saving water and where to report problems such as potential for the City to meet growing water requirements via leaking taps. effective water treatment. Waste minimisation In reducing the demand for potable water, 13 of the City’s The City is committed to achieving citywide waste wastewater treatment plants are able to extract and fully treat minimisation. Steps in this regard include developing and wastewater, which can then be supplied to various customers, running waste management facilities, incorporating materials including schools, parks, farms and golf courses for irrigation recovery facilities, public drop-off sites, composting, and purposes. The City has already expanded its treated-effluent crushing facilities for builders’ rubble. During the 2013/14 capacity to an estimated 4 935 mℓ/month. This non-potable financial year, the City has continued to focus on waste water is supplied at a reduced cost. The City also utilises streams that have the largest impact on airspace, namely this treated water for street cleaning and watering of the greens and organic waste, recyclables and builders’ rubble.

In reducing the demand for potable water, the City utilises treated effluent water for street cleaning and watering of the Company’s Garden in the city centre.

56 INTEGRATED Annual Report | 2013/14 OPPORTUNITY CITY OBJECTIVE 1.4: ENSURE MOBILITY THROUGH THE IMPLEMENTATION OF AN EFFECTIVE PUBLIC TRANSPORT SYSTEM The long-term goal of Transport for Cape Town (TCT) is to achieve their ‘vision of one’, for which nine objectives have been identified, each including specific programmes and projects. This will require the transport-related content in the current IDP to 2014 be reviewed.

Programme 1.4(a): Public transport programme CAPITAL DESIGN WORLD Comprehensive Integrated Transport Plan approved In December 2013, Council approved the City’s Comprehensive Integrated Transport Plan (CITP) 2013 – 2018. The CITP is the strategic plan and roadmap for achieving the new transport agenda in Cape Town, which aims to facilitate a major shift from the old multi-operator approach to one that focuses on integrated transport for the benefit of all commuters. It further outlines the City’s commitment to plan, implement and operate transport in a transparent and accountable manner, so as to improve the transport system for the benefit of all communities across the city. OVERVIEW OF The approved CITP 2013 – 2018 includes a biannual mini-review. This was completed and approved by Council in June 2014, and THE CITY OF CAPE TOWN serves as an addendum to the approved CITP. The need for the mini-review stems from the following:

• A commitment to address the items identified in the • Parking Policy CITP under the mini-review immediate-term priorities • Universal Access Policy • The need to address the comments made by the MEC • Development Contribution Policy when approval was granted for the CITP 2013 – 2018 • Road Safety Strategy • Alignment of the approved CITP with the relevant • Memorandum of understanding between Province, TCT financial management timelines and the City’s Medium- and Golden Arrow Bus Services Term Revenue and Expenditure Framework (MTREF) MANAGEMENT RISK AND • The creation of TCT as the country’s first transport COMPLIANCE GOVERNANCE, The mini-review also addressed the following policies, authority that has been registered as a World Design strategies and interventions approved by Council in December Capital 2014 legacy project 2013, and which provide positive, implementation-oriented service delivery mechanisms: After the TCT Constitution By-law No. 7208 of 2013 had been • Approved and gazetted TCT Constitution by way of gazetted, there was a need to develop long-term strategies By-law No. 7208 of 2013 to give effect to the by-law. These strategies are as follows: 2012/13 PERFORMANCE REVIEWPERFORMANCE Table 3.8: Transport for Cape Town strategies

Strategy Timeline Description A 3 years Consolidation of the TCT transport authority model with the focus on performance-oriented service delivery B 5 years Consolidation of the TCT transport authority financial management strategy and investment logic under the Municipal Land Transport Fund C 10 years Roll-out of the integrated road and rail methodology with the focus on one brand, one ticket and one integrated timetable ORGANISATIONAL DEVELOPMENT ORGANISATIONAL D 15 years Ensuring that costs of the user access priority are halved for the benefit of the citizens of, and visitors, to Cape Town

Making accessible transport a reality for all A hierarchical, multidirectional accessibility grid for Cape main routes. Town will form the foundation for the routing and service design of an integrated public transport network (IPTN). The intention is ultimately to ensure that at least 80% of the city’s population is within 500 m of a high-quality public ECONOMIC SUSTAINABILITYECONOMIC transport system. AND PERFORMANCE FINANCIAL In moving towards an IPTN for Cape Town, the City recently completed the IPTN Plan, outlining the network of public transport routes that are planned to serve Cape Town in the future. The network plan is based on a future land use scenario that takes transit-oriented development (TOD)

principles into account. It covers extensions to the rail STATEMENTS network, such as Blue Downs rail line, the doubling of the FINANCIAL ANNUAL Strand rail line and other improvements. The plan also includes the alignment of 14 BRT main lines supported by a distributor route, as well as scheduled and unscheduled feeder services. The feeder services not only provide access within the local areas, but also link up with the rail and BRT APPENDICES

INTEGRATED Annual Report | 2013/14 57 Council approved the Cape Town IPTN Plan for 2032 on 25 June 2014. The plan is the first of a suite of documents relating to the IPTN, and will be followed by the operations plan, the implementation plan and the business plan in 2014 and 2015. The purpose of each document is outlined in the figure below:

IPTN Package of plans

Map of the integrated IPTN Network plan public transport network in 2032

Operational parameters IPTN Operational plan of the 2032 network e.g. fleet size, frequency, etc.

Roll-out plan to guide IPTN Implementation plan implementation of the network towards 2032

Detailed business, IPTN Business plan economic and financial assessment

Figure 3.4: The City of Cape Town’s integrated public transport network plans

Maintaining Cape Town’s road infrastructure For any city to operate effectively and efficiently, an Table 3.9: Major road upgrades and repairs adequately funded and resourced, well-developed and well- in 2013/14 maintained road and street network is essential. The Cape Town network comprises 9 819 km of roads and streets, as well Project Status as approximately 1 850 bridges and other ancillary elements, Main Road reconstruction – Phase 2 completed, such as subways, retaining walls, guardrails, footways, cycle Muizenberg to Clovelly phase 3 commenced ways, signs and sign gantries. Ou Kaapse Weg/Steenberg Rd Completed The effective operation and maintenance of this enormous intersection improvement network greatly affects the efficiency of transport of people and goods into and within the city. At the same time, demand AZ Berman, Mitchells Plain, Completed for streets and associated services for social housing places rehabilitation huge pressure on capital and operating budgets. Spine Road, Mitchells Plain, Completed The City will be upgrading and expanding Cape Town’s rehabilitation public transport interchanges over the next five years to accommodate the growth in demand for access and mobility. Eisleben, Mitchells Plain, Completed Altogether 25 high-commuter-traffic interchanges will receive rehabilitation special focus as part of the project, which is anticipated to Otto du Plessis, Commenced cost around R321 million. This improvement programme Melkbosstrand, rehabilitation forms part of the City’s mobility strategy, which supports the development of a balanced transport system. It focuses on Glencairn expressway Completed all elements of the transport system, including rail, bus, taxi, cycling, pedestrians, parking management, freight and traffic Swartklip Road Completed management information and data. This will be undertaken Mission Grounds, Sir Lowry’s Second-phase under the banner of Transport for Cape Town so as to ensure Pass Village construction completed synergy and a collaborative approach. In line with the City’s IDP, the following major road upgrades Concrete road upgrades All projects and maintenance projects have been started or were in Gugulethu, Heideveld, commenced, Heideveld completed in 2013/14: Bonteheuwel and Manenberg close to completion

58 INTEGRATED Annual Report | 2013/14 From a structural perspective, the following maintenance missing transport links in the public transport system work has been, or will soon be carried out: serving this area, where BRT could have a significant impact. The adoption of the IPTN plan by Council on 25 June 2014 • Victoria Road bridge over rail (Plumstead) upgrade – has given the necessary direction to proceed with the more consultant appointed for the design

detailed planning and design of a phase 2A, which will be 2014 • Mnandi pedestrian bridge over Baden Powell Drive – a MyCiTi service along the Wetton Lansdowne corridor. In work in progress to replace stolen ballustrades order to provide additional short-term capacity, the City has proceeded with the implementation of a pilot MyCiTi CAPITAL DESIGN WORLD • De Smidt steps – rehabilitation in progress express service linking Khayelitsha and Mitchells Plain with • Glencairn retaining wall – phase 2 commenced Cape Town. Programme 1.4(b): Rail service improvement MyCiTi passenger numbers show steady increase and upgrade programme Since the MyCiTi bus service was first implemented, the City An investigation was undertaken into the requirements to has invested R4,6 billion in this vital service to the people of Cape Town. The value of this investment is evident from the construct and implement services on the Blue Downs rail OVERVIEW OF corridor as approved by Council in September 2012. This phenomenal uptake of the service by commuters looking THE CITY OF CAPE TOWN was subsequently approved by the Passenger Rail Agency of for alternative public transport. Passenger numbers steadily South Africa (PRASA) for implementation. increased every month from November 2013 to February 2014. A total of 402 880 passenger trips were recorded for PRASA has also given approval to proceed with the November 2013, escalating to 761 000 in February 2014, construction of Bloekombos Station in Kraaifontein East. which represents a phenomenal increase of 89% for the Council endorsed and approved this initiative in June 2014. period. The sale of myconnect cards has also exceeded Programme 1.4(c): Bus rapid transit (BRT) expectations, and interventions to address bus schedule adherence are yielding results. programme Phase 2 of the City’s BRT system is defined as the metro Meeting rising demand for MyCiTi services AND RISK MANAGEMENT RISK AND southeast area, and is responsible for most of the total From the launch of the MyCiTi system to the end of June COMPLIANCE GOVERNANCE, public transport activity in the metropolitan area. Years of 2014, an estimated 15 152 715 passengers have travelled on planning, research and investigation have identified critical the MyCiTi buses, as set out in the table below:

Table 3.10: Passenger usage of MyCiTi services From 2010 (start of 2012/13 service), 2012/13 2013/14

including financial financial REVIEWPERFORMANCE Categories of service 2013/14 year year Standard MyCiTi services 14 252 898 2 934 418 7 749 276 Airport 426 291 100 315 16 119 Events 473 526 78 596 65 285 Total 15 152 715 3 113 329 7 830 680

Surpassing 15 million passenger trips was a significant milestone for the service, and indicates that the residents of Cape

Town have embraced Transport for Cape Town’s vision. The MyCiTi project is a key component of efforts to overhaul public DEVELOPMENT ORGANISATIONAL transport in the city and to redress the negative impacts of apartheid-era spatial planning, which relegated many residents to the margins of Cape Town. In the 2013/14 financial year, MyCiTi added services within the Cape Town inner city, now servicing Salt River, Gardens, Vredehoek and Oranjezicht as well as Sea Point, Camps Bay and as far as Hout Bay. Services were further extended along the West Coast, with MyCiTi now operating in Melkbosstrand and further north in Atlantis. The service in Table View was extended with additional feeder routes, while the main service from Cape Town Civic Centre to Table View was extended to Dunoon, providing much- needed public transport options for the residents of the area. In July 2014, the City launched an express service between Khayelitsha and Mitchells Plain and central Cape Town. The express service was planned to start on 5 July 2014, and will continue until PRASA finishes its planned modernisation of the service SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL from Khayelitsha to central Cape Town. At that stage, the express service will be reassessed. The aim of the new services is to complement the City’s rail service and to meet the needs of commuters on high-demand corridors. In line with this ongoing expansion, the following vehicles were added to the MyCiTi service during the year under review: • 9 Scania 12 m high-floor buses, supplementing the remaining vehicle requirements on main routes for phase 1. Delivery of the bulk of the 66 Scania vehicles was expected by December 2014.

• 221 Optare 9 m buses supplied by Busmark 2000 STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL • 7 Volvo 12 m low-floor buses for the N2 express service. Delivery of the bulk of the buses was expected by December 2014. APPENDICES

INTEGRATED Annual Report | 2013/14 59 Programme 1.4(d): Travel demand management programme Travel Demand Management Strategy review The City developed a Travel Demand Management (TDM) The conceptual NMT network planning was informed by Strategy in 2007. Chapter 8 of the CITP, which was approved at pedestrian and bicycle user groups, trip generators (schools, the end of 2013, further developed the TDM Strategy. Given the clinics, shopping, etc.), public transport stops and stations, discussions on the importance of travel demand management accident information and existing local NMT networks. during 2013/14, the City will be updating the TDM Strategy in To date, the following NMT projects have been completed the 2014/15 financial year, incorporating recent developments under part 2 of the citywide NMT programme: and adding more outcomes-based interventions. • Kraaifontein phase 1 and 2 – major roads in Kraaifontein, Helping Capetonians to travel “SMART” Scottsdene, Northpine and Wallacedene, including a In 2012, the City launched an innovative programme to section of Old Paarl Road change travel behaviour, called Travel SMART. The programme aimed to encourage and support commuters in making more • Military Road, Steenberg – from St Christopher Avenue to informed and sustainable travel choices in order to reduce Henley Road, including Deposition Crescent, Hek Road single-occupancy vehicle (SOV) use and vehicle emissions. and St Christopher Avenue; Prince George Drive from Military to Vrygrond Avenue, including Vrygrond Avenue The focus of Travel SMART is to develop partnerships with large organisations and help them support their employees to choose • Atlantis – area-wide NMT improvements along major roads more sustainable ways of travelling, both to and from work and • Bonteheuwel Station to central city – NMT improvements during the working day. A pilot programme, which consisted of along major roads a partnership between the City, Province and another five large employers in central Cape Town, was implemented. • Freedom Way in Phoenix and Democracy Drive, Milnerton Travel SMART interventions include promoting: • Langa area NMT – along Bhunga Road, Sandile Street, Jungle Walk and Washington Drive, as well as roads • public transport; leading to public transport facilities • NMT (walking or cycling); • Weltevreden Parkway in Mitchells Plain • lift clubs (car-pooling); • Merrydale Road in Mitchells Plain • the introduction of flexible work programmes for employees; • De Waal and Victoria roads, including Dick Burton • staff bike-sharing; and (NMT movement from Grassy Park to Plumstead • efficient driving practices. employment areas) A study has recently been undertaken to develop a • Concert Boulevard in Retreat framework to guide the selection of appropriate Travel SMART • NY1 and NY3 in Gugulethu interventions to achieve predictable and measurable change in travel behaviour. In addition, an analysis of transport users • Delft Main Road phase I is being conducted, including the profiling of characteristics • Belhar/Delft Road phase II that influence travel behaviour, as well as the quantification and sizing of target groups for specific interventions. • Delft Main Road phase III Travel SMART supports the development of a green economy by • Rondebosch Common promoting low-carbon, low-energy growth, and was selected as The following NMT projects are currently under construction: one of the flagship projects of Province’s GREEN Campaign. • Range Road in Blackheath towards the rail station Continued progress with non-motorised transport facilities • Forest Drive and Bobs Way in Eerste River In 2009, the City of Cape Town embarked on the citywide NMT • Hout Bay Main Road from Nelson Mandela Road to programme to develop a comprehensive NMT network plan OR Tambo Road for the whole of Cape Town. The objectives of the programme • Albert Road from Station Road in Observatory to Station are to expand the City’s NMT infrastructure and encourage Road in Woodstock area walking, cycling and other forms of active mobility (such as skateboarding) as modes of travel for commuting and • Schaap Road from Klip Road to 11th Avenue, Grassy Park recreational purposes. The creation of safer pedestrian and cycling environments also features among the City’s aims. The Further NMT projects are already in the tender and/or design planning and design for NMT projects also incorporate universal stages for future implementation. access/design improvements, soft and hard landscaping, Creating jobs through transport development bicycle parking/seating facilities and overhead lighting. NMT projects are well suited to job creation via EPWP principles. For the purposes of the programme, the city was divided into For this reason, local communities and emerging contractors four regions (central, north, south and east). Multidisciplinary are incorporated at construction stages, wherever possible. consulting teams were appointed for each of the regions, The EPWP principles have been applied to NMT projects since first to develop a conceptual NMT network plan per region, July 2011, with 315 jobs having been created. Employees and then to commence with detailed design, tender participate in accredited training, and can therefore use their documentation and contract management. certificates when looking for other jobs afterwards.

60 INTEGRATED Annual Report | 2013/14 MyCiTi recognised as a world leader in universal access

In February 2014, MyCiTi’s Universal Accessibility Policy City, the Province as well as the South African National Roads was recognised as one of the most innovative policies in the Agency Limited (SANRAL). Enhancements to the system world in terms of ensuring that all special-needs passengers included the installation of advanced traffic monitoring are able to make use of the service. The MyCiTi system was equipment on all freeways, as well as weather stations to 2014 highlighted at an international summit on accessibility, which monitor conditions that might adversely affect road safety. was attended by more than 400 experts on accessibility and CAPITAL DESIGN WORLD Work also began on plans to extend the Goodwood- disability from across the world, for being the first universally based Cape Town Transport Management Centre (TMC) in accessible transport system in South Africa. anticipation of the expanded role that the City will play in the The accolade recognised that all 35 MyCiTi stations and management of subsidised bus services and the provision of 161 roadside bus stops are universally accessible; that all real-time transport information to the public. 379 buses have level boarding, spaces for wheelchairs and an audio LED screen; that the system contains a 22,4 km Programme 1.4(f): Institutional reform network of accessible walking and cycling pathways, and that programme OVERVIEW OF

15 000 daily passengers have been recorded in 2013. Since the establishment of TCT, ongoing institutional reforms THE CITY OF CAPE TOWN have been taking place. To date, the following has been achieved: According to the Scientific Advisory Board of Zero Project, the organisation that presented the award, the MyCiTi IRT • TCT’s Constitution, By-law No. 7208 of 2013, gazetted system stands out for its commitment and ability to create and now operating accessibility, as its Universal Access Policy is a comprehensive, long-term and multilevel effort that includes universal design • TCT long-term strategy developed and attention to the entire journey. • Action plan matrix and various project plans completed Innovative MyCiTi fare system enhances transport • Commencement of the appointment of TCT senior access for all staff, and transition from old Transport, Roads and AND RISK MANAGEMENT RISK AND

In August 2013, MyCiTi introduced an innovative distance- Stormwater structure to new TCT structure COMPLIANCE GOVERNANCE, based fare system to replace its previous flat fare system. The • Eight organograms completed, loaded, and cost centres new system calculates fares based on the distance travelled changed by passengers, rather than a flat rate for entire routes, thereby saving commuters money in transport costs. The two main • Two contract agreements (municipal regulating entity principles behind the new system are that the fares should and contracting authority) finalised be comparable to those charged by other bus services and the • Two agency agreements (municipal regulating entity 2012/13 minibus-taxi industry, and that they must minimise the cost and contracting authority) finalised

deficit of the system. REVIEWPERFORMANCE • Memorandum of understanding signed between Programme 1.4(e): Intelligent transport Province, Golden Arrow Bus Services and TCT systems programme • Intermodal Planning Committee constituted and first The 2013/14 financial year saw the completion of a substantial meeting held upgrade to the City’s central traffic signal control system. State-of-the-art hardware and software were procured and • New TCT brand completed commissioned to improve system capability and ensure The City is still awaiting the approval and assignment of reliability into the future. the contracting authority and municipal regulating entity The roll-out of the Cape Town freeway management system functions by the National Minister of Transport, followed by continued as part of a multiyear contract supported by the promulgation in the Government Gazette by the President. DEVELOPMENT ORGANISATIONAL ECONOMIC SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL APPENDICES

INTEGRATED Annual Report | 2013/14 61 OPPORTUNITY CITY OBJECTIVE 1.5 LEVERAGE THE CITY’S ASSETS TO DRIVE ECONOMIC GROWTH AND SUSTAINABLE DEVELOPMENT The City has initiated a programme to unlock the development for the market will be released in accordance with a structured potential of underutilised municipal land in previously property release programme, and will include areas such as disadvantaged communities in order to promote economic Khayelitsha and Mitchells Plain. growth and job creation. Programme 1.5(a): Investigate all the City’s The process includes the identification of suitable, strategic assets underutilised Council properties in poorer communities, The City is working towards the development of an conducting of feasibility studies, development of the concept, immovable-property asset management framework that land use and statutory approvals, the tendering process, and will incorporate international best practice, including contracting with the private sector to lease/own, finance, managing and performance-measuring portfolios of construct and operate such developments. immovable property assets over the full life cycle (planning, Opportunities for the development of retail, commercial, acquisition, holding/utilisation and disposal), reporting on residential, industrial and social facilities will be unlocked performance, and aligning immovable-property objectives through this process, and will be presented to the private with the strategic focus areas of the IDP. sector for implementation. Properties prepared and packaged

62 INTEGRATED Annual Report | 2013/14

2014 WORLD DESIGN CAPITAL DESIGN WORLD

OPPORTUNITY CITY OBJECTIVE 1.6 OVERVIEW OF

MAXIMISE THE USE OF AVAILABLE FUNDING AND PROGRAMMES FOR TRAINING AND SKILLS THE CITY OF CAPE TOWN DEVELOPMENT Programme 1.6(a): Sectoral education and training authority (SETA) and EPWP funding used to train apprentices and create other external training opportunities. Training of apprentices for vacant posts in the administration and the city The City offers a wide range of training opportunities to City’s apprenticeship programme is changing unemployed youth. These include apprenticeships and learnerships in various disciplines, in-service training to futures for young Capetonians

students, postgraduate internships and external bursaries. Athi Ntombini, a 24-year-old rapper from Mandalay in MANAGEMENT RISK AND Mitchells Plain, recently became one of the promising COMPLIANCE GOVERNANCE, During the period under review, the targets set at the start of young apprentices to be appointed by the City of Cape Town the 2013/14 financial year were significantly exceeded upon completion of his training and trade test in 2013. through both the allocation of additional funding in the mid- Athi was appointed as an electrician in the City’s Utility year review and through the dedication of line departments to Services Directorate. He is now involved with the City’s take on the responsibilities of transferring skills. This R5 million electrification redress project in Sweet Homes programme will continue to be expanded through additional in Philippi, where he is making a tangible difference in 2012/13 funding from SETA and partnerships with other levels of the improvement of the quality of life for residents of this government in future. informal settlement. REVIEWPERFORMANCE The City has exceeded its target of creating 900 external What’s more, thanks to the training Athi has received, and opportunities by providing 1 487 external opportunities, his subsequent permanent appointment at the City, he consisting of students, apprentices and external bursaries. now has financial independence, freedom of choice, and a rewarding career in serving the residents of the city. He is Apprenticeships increased from 314 to 327 with the inclusion of just one of many young Capetonians who are being given a programme funded by Western Cape Government. In-service these opportunities, with many others currently being training opportunities increased from 788 to 916, and external trained as carpenters, auto-electricians, welders, fitters, bursaries from 166 to 244. The fields of study for bursaries were plumbers, diesel mechanics, painters, boilermakers and awarded based on the scarce and critical skills identified within bricklayers within the City’s Utility Services Directorate. City directorates’ staffing strategies. Approximately 80% of the ORGANISATIONAL DEVELOPMENT ORGANISATIONAL bursary students were appointed in the administration. In November 2013, 232 AET level 4 learners were registered to An awards ceremony was held in 2013 to celebrate the write their national examinations in different learning areas, achievement of learners who passed their level 4 national including Life Orientation, Mathematical Literacy, Travel and examination. These learners were each awarded certificates in Tourism, and Small, Medium and Micro Enterprises. All of these the different learning areas for academic excellence by learners achieved academic excellence in the past financial year. Province’s Education Department. Overall, just less than 10% of all new appointments in the 2013/14 financial year were drawn from the City’s external City’s programmes delivering positive results training programme, highlighting the success of preparing In the year under review, the City rolled out the Mayor’s these young people for jobs in the formal sector.

accelerated (18-month) apprenticeship programme to the three SUSTAINABILITYECONOMIC major departments within the Utility Services Directorate. Ninety AND PERFORMANCE FINANCIAL apprentices were recruited across the trades of auto-electrician, boilermaker, bricklayer, carpenter, diesel mechanic, fitter, painter, plumber and welder. Upon completion of the programme in May 2014, a total of 86 apprentices successfully passed their trade tests, 75 of whom were given permanent positions.

A further 273 artisans are still working toward completing STATEMENTS their artisanship. FINANCIAL ANNUAL The majority of the participants are from previously disadvantaged backgrounds, including a substantial number of female trainees, which is in line with the City’s commitment to facilitating redress and making progress possible through working with Cape Town’s young talent. APPENDICES

INTEGRATED Annual Report | 2013/14 63 STRATEGIC FOCUS AREA 2

Th itye sAFE c For the City of Cape Town, creating a safe city involves far more than merely responding to crime. Safety extends beyond the law enforcement function, but rather includes positive action across the full spectrum of development challenges facing residents of Cape Town. Therefore, a key strategy for the City is to partner with communities in its efforts around social crime prevention, disaster response and management, and ongoing urban regeneration. In order to position Cape Town as a safe city, the following five key objectives – each with its own underpinning programmes – were identified in the 2013/14 review of the City’s IDP: Table 3.11: IDP objectives and programmes for SFA 2

Page in Page 2013/14 in this Objective Programme Idp review report 2.1: Expanding staff and 2.1(a): Increase in operational staff complement 57 65 capital resources in policing departments and emergency services to provide improved services to all, especially the most vulnerable communities 2.2: Resource departments • Development of a vehicle replacement policy 57 65 in pursuit of optimum • Invest in specialised units in line with international operational functionality best practice 2.3: Enhance information- 2.3(a): Improved efficiency through information and 58 66 driven policing with technology-driven policing improved information- 2.3(b): Intelligent crime prevention 59 66 gathering capacity and functional specialisation 2.4: Improve efficiency of 2.4(a): Training and human resources development 59 67 policing and emergency staff through effective training 2.5: Improve safety and 2.5(a): Strengthen community capacity to prevent crime and 61 67 security through partnerships disorder

This section of the 2013/14 annual report offers a review of the progress made against each of the objectives and their underpinning programmes in the past financial year.

Key safe city achievements in 2013/14 • Reduced number of accidents at Cape Town’s five highest • 99,99% of Fire and Rescue Service’s capital budget spent accident-frequency intersections • Hazard-specific plans formulated • Significant improvement in the recovery of fine income • Municipal Disaster Risk Management Plan updated owed to the City and revised, giving effect to the recent comprehensive • 83% of emergency incidents responded to within disaster risk assessment 14 minutes from initial call • Numerous emergency exercises successfully conducted • Melkbos Fire Station completed and now fully operational to test disaster risk management plans

64 INTEGRATED Annual Report | 2013/14

2014 WORLD DESIGN CAPITAL DESIGN WORLD OVERVIEW OF THE CITY OF CAPE TOWN SAFE CITY OBJECTIVE 2.1 EXPANDING STAFF AND CAPITAL RESOURCES IN POLICING DEPARTMENTS AND EMERGENCY SERVICES TO PROVIDE IMPROVED SERVICES TO ALL, ESPECIALLY THE MOST VULNERABLE COMMUNITIES Programme 2.1(a): Increase in operational staff complement Externally funded member programme continues to grow The City’s externally funded policing programme was launched in 2008 to enable the private sector to secure the dedicated services of members of the City’s policing departments for specific areas. During the 2013/14 financial year, support for this initiative continued to grow, and 186 additional, privately sponsored law enforcement officials have now been deployed in MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, specific areas of the city. Auxiliary Law Enforcement Service The City’s Auxiliary Law Enforcement Service was established the capacity of this vital unit to perform its important policing to allow for the deployment of volunteer law enforcement duties. Training covered various disciplines, including firearm officers. To date, the City has received nearly 800 applications and rifle-handling, lifesaving, and skipper competency. for this service. A total of 79 applicants have successfully 2012/13 The Unit has also been provided with eight vessels, including a completed the training. In addition, 15 of the officers (or 7,5 m patrol boat and three jet-skis, to patrol the city’s coastline ‘specials’, as they are known) have secured employment with REVIEWPERFORMANCE and engage in regular joint operations with the South African the City on a contract basis. Border Police, the Department of Agriculture, Fisheries and Creating jobs while keeping people safe Forestry, and the Table Mountain National Park Marine Unit. The festive season places significant strain on the City’s SAFE CITY OBJECTIVE 2.2 fire and rescue services. At the end of 2013, it prepared for this pressure by employing 120 seasonal fire-fighters, RESOURCE DEPARTMENTS IN PURSUIT OF whose primary mandate was to keep any vegetation fires OPTIMUM OPERATIONAL FUNCTIONALITY under control. The City’s Safety and Security Directorate has established In addition, resources were employed through the EPWP 14 specialised policing units to focus on specific priority to inspect and clean fire hydrants, man the fire station crimes, particularly through intelligence-driven policing. DEVELOPMENT ORGANISATIONAL watch-rooms and carry out maintenance tasks around A plan to address gangsterism the stations. This has freed up trained fire-fighters to In January 2014, a meeting of relevant stakeholders identified concentrate on fire-fighting operations, particularly in the seven pilot hot spots of gang activities in the city. A process city’s informal settlements, where fires can have a rapid was put in place to devise a plan to address violent crimes and devastating impact. associated with gangsterism, particularly in these areas. The City’s Fire and Rescue Service has also trained a Each of the geographical areas has had a task team assigned further 30 reservists, who provide support to their full- to it, comprising: time colleagues in the field. The reservist programme is

• Cape Town Metro Police Department area members, SUSTAINABILITYECONOMIC designed to recruit and train 30 volunteers per year in order AND PERFORMANCE FINANCIAL to eventually form a trained reserve of 240 over the next five including a first-line supervisor; to six years. • members from the Special Investigations Unit; Ensuring safety on public transport interchanges • members of the Metro Police Gang Unit; The Public Transport Interchange Unit comprises 33 law • a Metro Police area superintendent; and enforcement officers stationed at various major public • reserve teams.

transport interchanges. The Unit’s activities supplement the STATEMENTS Drug Task Team established security provided by various private security companies, the FINANCIAL ANNUAL City’s Metro Police and the South African Police Service. In November 2013, the City established a Drug Task Team with the aim of raising its effectiveness in combating drug-trafficking Marine and Environmental Unit builds capacity crimes in designated areas, such as Long Street in Cape Town. During 2013/14, members of the City’s Marine and The mandate was subsequently extended to those areas in Cape Environmental Law Enforcement Unit underwent months of Town that have been identified as centres of narcotic distribution,

intensive training as part of the City’s investment in enhancing transportation, smuggling and other drug-related activities. APPENDICES

INTEGRATED Annual Report | 2013/14 65 SAFE CITY OBJECTIVE 2.3 Traffic services Safety extends ENHANCE INFORMATION-DRIVEN POLICING For the period 1 July 2013 to 30 June 2014, the Traffic Services beyond the law Department issued 2 102 849 traffic fines. Most of the fines enforcement function, WITH IMPROVED INFORMATION-GATHERING issued (1 121 247) were for speeding motorists. Fines were but rather includes CAPACITY AND FUNCTIONAL SPECIALISATION also issued for drivers disobeying red robots and stop signs, positive action Programme 2.3(a): Improved efficiency as well as overtaking illegally, to name but a few. across the full spectrum through information and technology-driven During the same period, Traffic Services arrested a total of of development policing 2 809 drivers for driving under the influence, and 370 for challenges facing Committed to quicker response and better reckless driving. Altogether 64 064 warrant executions residents of communication were finalised. In total, 67 869 motorists were dealt with in Cape Town. The City’s emergency response target is set at no more terms of arrest procedures. Other arrests included those than 14 minutes from call receipt to arrival on the scene in relating to public transport, illegal firearms, drug possession at least 75% of emergencies. In the year under review, the and fraudulent documentation. The Department has also City’s emergency response services exceeded this target by attended to many situations requiring traffic management, responding to 83% of emergency calls within 14 minutes with approximately 1 788 events monitored or assisted by or less. Also during the 2013/14 period, the City’s Public traffic officers during the financial year. Emergency Communication Centre dealt with a total of Traffic Services has placed particular emphasis on policing 550 115 calls, 93% of which were answered within 20 seconds. illegal public transport operations and street racing, and Programme 2.3(b): Intelligent crime prevention has achieved much success in this regard. Numerous arrests were made and many fines issued, with a hard stance taken Policing against vehicles that are not fit to be used on public roads. The City has three policing departments, namely Metro Approximately 2 000 taxis were impounded for offences Police, Traffic Services, and Law Enforcement and Specialised relating to illegal public transport. Services. During the period under review, 214 825 citations were issued for by-law offences across the city. Significant Vice Squad results were also achieved in the combating of illegal The City’s Vice Squad continues to play a vital role in land invasions, with 100% of reported cases having been combating human trafficking. It continued its focus on successfully managed. This in effect means that land brothel inspections during the financial year under review, invasions were prevented in Cape Town over the 12-month and managed to inspect 1 617 premises. The Unit is also reporting period. responsible for policing sex solicitation in Cape Town. Emergency services The Metals Theft Unit City Emergency Services are made up of the 107 Emergency This unit continued to enjoy significant success in conducting Call Centre, the Fire and Rescue Service and the Disaster Risk unannounced inspections at both scrapyards and so-called Management Centre. In the year under review, the Fire and ‘bucket shops’ (informal scrapyards run illegally from Rescue Service dealt with 32 916 incidents, 19 201 of which residential premises). were medical or trauma incidents (which do not fall within the Combating drug and alcohol abuse ambit of the service’s core functions). During the year under review, the Metro Police Department continued to clamp down on Cape Town’s illegal drug and alcohol trade, and numerous intelligence-led operations led to the disruption of many dealing activities and 2 138 arrests for drug-related crimes. Also during the 2013/14 financial year, the City’s Law Enforcement and Specialised Services Department’s Liquor Control Unit continued to step up its action against illegal liquor trading. The Unit conducted 2 679 inspections of suspected illegal liquor-trading premises, and closed down a number of shebeens. Promoting road use compliance The City’s Traffic Services Department has an Operations Section, which undertakes specialised and general enforcement activities, provides road safety education at schools, and manages traffic at all events affecting Cape Town’s roads. The City follows a strong partnership-based approach to traffic services, and has renewed its contracts with Outsurance, which will be funding a mobile traffic service, and Century City Property Owners’ Association, which is the first private body to agree to pay for the services of a dedicated, qualified traffic officer. The City has provided funding for additional operational personnel, who will commence duty in the new financial year.

66 INTEGRATED Annual Report | 2013/14 SAFE CITY OBJECTIVE 2.4 IMPROVE EFFICIENCY OF POLICING AND EMERGENCY STAFF THROUGH EFFECTIVE TRAINING Programme 2.4(a): Training and human resources development

Training for sustainable excellence 2014 Between July 2013 and June 2014, the City facilitated the basic training of 32 learners in its specialist traffic and metro policing courses. A total of 2 369 staff across the Safety and Security Directorate have now received this valuable in-service training since CAPITAL DESIGN WORLD the courses were first implemented in 2011. Particular in-service training successes for the year under review included the following:

Table 3.12: In-service training for staff of the City of Cape Town’s Safety and Security Directorate

Training Participants OVERVIEW OF Legislative firearm refresher training 800 Safety and Security staff THE CITY OF CAPE TOWN Accredited training endorsed by the South African National Seven staff members of the Equestrian Unit Equestrian Federation Motorcycle training 63 staff, including two SAPS members Peace officer and traffic warden training 39 staff, including some from external departments such as Environmental Health, Heritage and Solid Waste Traffic warden training 118 staff Legislative training in section 49(2) of the Criminal Procedure 130 staff AND RISK MANAGEMENT RISK AND

Act 51 of 1977 COMPLIANCE GOVERNANCE, By-law training 180 staff Driver training 26 staff

*This high-level training now protects the City against vicarious liability. 2012/13 SAFE CITY OBJECTIVE 2.5 Programme 2.5(b): Strengthen community PERFORMANCE REVIEWPERFORMANCE IMPROVE SAFETY AND SECURITY THROUGH capacity to respond to emergency situations PARTNERSHIPS Cross-directorate cooperation helps reduce fire risks Programme 2.5(a): Strengthen community The City has implemented a range of engineering solutions capacity to prevent crime and disorder aimed at minimising the risk of extensive fire damage in informal settlements. One key initiative is the re-blocking Neighbourhood watch support programme helps of informal settlements. This involves the grouping and build safer communities reformatting of structures in the settlements to optimise The City continues to work closely with neighbourhood watch space, enhance security and improve fire prevention and organisations to boost social crime prevention efforts and to service delivery access. The City is also engaging with build partnerships against crime with communities as part various suppliers of innovative fire prevention solutions, DEVELOPMENT ORGANISATIONAL of the administration’s commitment to create a safe city. from retardant paints and safer shack designs to less risky The neighbourhood watch support programme, which started lighting units. The viability of providing fire extinguishers to out as the Neighbourhood Watch Task Team in 2008, drives communities is also being tested. the establishment of neighbourhood watch organisations across the city and ensures ongoing support, including the training of members by the City and Province’s Department of Community Safety. The Safety and Security Directorate manages this support

programme through its Community Liaison Office. During SUSTAINABILITYECONOMIC the year under review, the City allocated an additional R1,4 AND PERFORMANCE FINANCIAL million to the programme as part of its adjustment budget. The neighbourhood watch organisations are issued equipment, including reflective jackets, rechargeable flashlights, two-way radios, whistles, tools for graffiti removal, and bicycles to assist with patrols. They are also trained in various aspects of social crime prevention, including STATEMENTS dealing with drugs and street crime, removing graffiti, gang FINANCIAL ANNUAL reduction, and working with law enforcement agencies. The training is structured so as to encourage trainees to move away from the old ‘patrol-search-arrest’ paradigm, which may foster vigilantism, to a safer and more efficient

‘projects’ approach. APPENDICES

INTEGRATED Annual Report | 2013/14 67 STRATEGIC FOCUS AREA 3

Th e cARING city The City of Cape Town is committed to becoming more caring and to building a metro in which all people feel at home, have access to the services they need, and where those who need help know they will receive it. Building such a caring city requires investment in social and environmental resources, ranging from human settlements – which include informal settlements – to social services, community facilities and others. In order to position the City of Cape Town as a caring city, the following eight key objectives – each with its own underpinning programmes – have been identified:

Table 3.13: IDP objectives and programmes for SFA 3 Page in Page 2013/14 in this Objective Programme Idp review report 3.1: Provide access to social 3.1(a): Number of targeted development programmes 66 69 services for those who need it 3.2: Ensure increased 3.2(a): Innovative housing programme 69 71 access to innovative human 3.2(b): Use property and land to leverage social issues 70 72 settlements for those who 3.2(c): Partner with Province in education and school sites 70 72 need it 3.2(d): Integrated human settlements programme 70 73 3.2(e): Densification programme 71 76 3.3: Assess the possible sale 3.3(a): Rental stock upgrade programme 71 77 or transfer of rental stock to identified beneficiaries, using established criteria 3.3(b): Rental stock disposal programme 71 77 3.4: Provide for the needs 3.4(a): Anti-poverty programme 72 78 of informal settlements and 3.4(b): Service delivery programme in informal settlements 72 78 backyard residences through improved services 3.4(c): Backyarder service programme 75 79 3.4(d): Energy services programme 76 79 3.5: Provide effective 3.5(a): Environmental health-care programme 77 80 environmental health services 3.6: Provide effective air 3.6(a): Measuring the number of days when air pollution 78 80 quality management and exceeds World Health Organisation guidelines pollution (including noise) control programmes 3.7: Provide effective primary 3.7(a): Primary health-care programme 79 81 health-care services 3.7(b): Perception survey score on the provision of primary 79 81 health-care services 3.8: Provide substance abuse 3.8(a): Primary health-care programme: Number of 80 81 outpatient treatment and substance abuse outpatients provided with alternative rehabilitation services constructive behaviour This review of SFA 3 offers an overview of the City’s performance against the objectives mentioned above, and its progress in terms of the implementation of the associated programmes.

Key caring city achievements in 2013/14 • 3 393 EPWP jobs created by the Social Development and • 40 recreation hubs established Early Childhood Development Directorate • 879 community initiatives held at parks • Won two of the three available National Department of Public Works Komosa awards • 347 reading programmes held at libraries • 77,3% of transferred Urban Settlements Development • 2 028 water service points (taps) provided Grant spent • 5 916 sanitation service points (toilets) provided • 55 social development projects implemented using ward • 4 391 subsidised electricity connections installed allocation funding • Limited the number of days when air pollution exceeded • 5 718 serviced-site housing opportunities provided RSA ambient air quality standards to zero (against a • 3 647 top-structure housing opportunities provided target of 25 days) • 1 046 rental units transferred to housing beneficiaries • Achieved cure rate of 83% set for new smear-positive tuberculosis

68 INTEGRATED Annual Report | 2013/14 CARING CITY OBJECTIVE 3.1 PROVIDE ACCESS TO SOCIAL SERVICES FOR THOSE WHO NEED IT

Programme 3.1(a): Number of targeted 2014 development programmes

Enhancing the City’s social development offering Performance and progress in the 2013/14 financial year CAPITAL DESIGN WORLD The City, primarily through its Social Development and The Directorate has developed a basket of services comprising Building such a Early Childhood Development Directorate, provides social seven identified programmes. The following four programmes caring city requires services and early childhood development (ECD) to those were identified as priorities for the 2013/14 financial year: investment in social who need it. The Directorate’s core purpose, therefore, is Early childhood development and environmental to create opportunities and an enabling environment for resources, ranging from communities to meet their developmental needs so that The aims of this programme are, amongst others, to: they can become resilient and self-reliant, thereby enabling • assist with ECD centres’ registration in collaboration with human settlements – OVERVIEW OF relevant departments within the City as well as Province’s which include informal them to participate in the global economy. THE CITY OF CAPE TOWN Department of Social Development; settlements – to social As part of its ongoing efforts to remain relevant and effective, services, community the Directorate undertook a business improvement process • train ECD practitioners, caregivers and parents in facilities and others. in the year under review. This included a comprehensive capacity-building; review and redevelopment of its policies in line with the • conduct regular surveys/audits on registered and City’s Social Development Strategy, the definition of the unregistered crèches in conjunction with Province; Directorate’s full basket of services, and the revision of • construct ECD centres on City-owned land in identified service delivery and budget implementation plans in areas of need; accordance with this newly defined basket of services. In • maintain City-owned ECD centres;

addition, the following policies were reviewed or developed MANAGEMENT RISK AND in the year under review: • contribute towards ECD curriculum development; and COMPLIANCE GOVERNANCE, • Street People Policy (reviewed) • assist non-complying ECD centres and act against • Early Childhood Development Policy (reviewed) ongoing non-compliance. • Youth Development Policy (reviewed) Achievements against these objectives in 2013/14 included: • Vulnerable Groups Policy (new) • the construction of two ECD centres; 2012/13 • the training of 267 ECD practitioners in the national ECD • Prevention and Early Intervention of Alcohol and Other norms and standards required to manage ECD centres Drug Use Policy (new) REVIEWPERFORMANCE and facilities; • Food Gardens Policy in support of Poverty Alleviation and • assisting 159 ECD centres in their efforts to comply with Reduction (new) health, safety and zoning requirements; and The Directorate also concluded its renewal of a multiyear • supporting 20 ECD forums in their efforts to capacitate implementation protocol agreement, which formalises its their surrounding communities to participate in the ongoing partnership with Province’s Department of Social early childhood development of their young community Development. members. ORGANISATIONAL DEVELOPMENT ORGANISATIONAL ECONOMIC SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL

Early childhood development forms an important part of the City’s social development offering. APPENDICES

INTEGRATED Annual Report | 2013/14 69 Street people The City implemented The aims of this programme are, amongst others, to: Achievements against these objectives in 2013/14 included: 11 projects to provide • compile a database of street people; • the training of 123 people in aspects of foetal alcohol support to the elderly. syndrome and foetal alcohol syndrome disorder; • provide assessment centres (including referral services) with access to other services, including physical and • the implementation of 22 alcohol and substance abuse mental assessment, referrals for bed space, rehabilitation prevention projects to prevent and minimise the harmful and reintegration with communities of origin; effects of alcohol and substance abuse; • the running of five Be Smart, Don’t Start campaigns to • implement the winter readiness programme; prevent and minimise the harmful effects of alcohol and • deal with street people matters on a daily basis in substance abuse; and conjunction with the Displaced People’s Unit; and • the implementation of five substance abuse prevention • create employment opportunities through EPWP projects. pilot projects at MOD centres to help prevent alcohol and substance abuse. Achievements against these objectives in 2013/14 included: Youth development • conducting 119 joint operations in partnership with City The aims of this programme are, amongst others, to: Law Enforcement/Displaced People’s Unit to offer social services to people who have migrated onto the city’s • provide life skills and employment skills for youth; streets; • offer career planning and referrals for further training • providing 1 375 people with social services and support within the City as well as other institutions offering to prevent them from having to migrate onto the streets; further training aimed at improving the employability • the implementation of five Give Responsibly campaigns of youth; to promote responsible giving in order to mitigate the • identify youth for leadership development migration of people-at-risk onto the streets; and programmes; and • the establishment of 14 local networks of care, and • collaborate with Province’s Department of Social equipping communities with the necessary skills to Development to render support to youth-at-risk. support community members at risk of migrating onto the streets. Achievements against these objectives in 2013/14 included: • the training of 2 404 young people in life skills, work skills Substance abuse and organisational development in order to afford them The aims of this programme are, amongst others, to: access to economic opportunities. • establish local drug action committees and equip them to carry out preventative projects; Other caring city achievements included the following: • forge partnerships with Province, non-governmental Vulnerable groups organisations (NGOs) and community-based • 11 projects were implemented to provide support to the organisations (CBOs); elderly. • concentrate on awareness programmes concerning the • 10 projects were implemented to provide support to negative impact of substance abuse; people with disabilities. • collaborate with schools to implement substance abuse • Nine projects were implemented to provide support to awareness sessions via mass participation, opportunity women-at-risk and girls-at-risk. and access, development and growth (MOD) centres; and Poverty alleviation and reduction • manage the Be Smart, Don’t Start project. • 45 poverty reduction projects (food gardens) were implemented in an effort to reduce and alleviate poverty in indigent and poor communities. Developing communities through sport, recreation and library programmes and partnerships Community development programmes are offered at many of the City’s facilities, such as its sports fields, community recreation centres, multipurpose centres, parks and libraries. Developmental activities range from reading programmes, storytelling sessions, school holiday programmes, library orientation sessions, HIV/Aids displays, formal book discussions, and arts and crafts, to initiatives for peer leadership, sport and recreation and capacity-building. The programmes often involve collaboration and partnerships with churches, community organisations, NGOs, the corporate sector, different tiers of government and other stakeholders. During the year under review, these partnerships included the following: • Community garden partnerships increased from 17 in the previous year to a total of 34 by the end of the year under review. The programme continues to work towards establishing community gardens in each district. • A total of 49 sport and recreation developmental partnerships have been established to promote the development of sport and recreation within the city. • Altogether 56 Friends of the Library partnerships have now The City’s eight health subdistricts boast the best TB cure rate in South Africa. been established.

70 INTEGRATED Annual Report | 2013/14 Sports development partnerships change young lives Pulp Fiction at Central Library

The City of Cape Town partnered with Waves for Change, Central Library, in partnership with Open Book Cape Town, a youth development programme, to have a positive impact on again held their popular Pulp Fiction event. Pulp Fiction the lives of young people in Khayelitsha and Masiphumelele. ‘saves’ books meant for pulping when publishers are no

The programme started in 2012, when 40 youngsters were longer able to sell them. This instalment of the event was the 2014 taught how to surf. It has proven so popular that, by the end of biggest to date, with 80 000 books saved and made available the 2013/14 financial year, it had influenced some 400 young

to other libraries and organisations. Central Library staff used CAPITAL DESIGN WORLD lives in a positive way. these books to build a maze inside the library, which proved The programme is far more than just a recreational outlet. It also very popular. Due to the huge number of books available, offers leadership camps and HIV and life skills programmes where this was also the first Pulp Fiction event where the public was 13 coaches from local communities guide and mentor learners invited to participate and collect books for themselves. In less from various local schools and the surrounding communities. than 24 hours, all 80 000 books were gone. CARING CITY OBJECTIVE 3.2 OVERVIEW OF ENSURE INCREASED ACCESS TO INNOVATIVE HUMAN SETTLEMENTS FOR THOSE WHO NEED THEM THE CITY OF CAPE TOWN In order to make Cape Town a caring city, the City knows it has to create integrated human settlements that enable communities to live instead of just exist. Cape Town, like so many other metropolitan cities in South Africa, faces huge challenges of urbanisation. However, the City remains absolutely committed to facilitating redress through integrated settlements, seeing to the needs of communities in informal settlements, and improving the plight of backyard dwellers by providing access to basic services. Programme 3.2(a): Innovative housing programme During the 2013/14 financial year, the City of Cape Town spent a total of 77,3% of its transferred Urban Settlements Development Grant (USDG) (for all directorates) and delivered a total of 5 718 sites, 3 647 top structures and 2 048 other housing opportunities (including upgrade of rental stock, land restitution and re-blocking). AND RISK MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, Table 3.14: Breakdown of housing opportunities in 2013/14 financial year Categories Sites Top structures Other A Subsidy 4 157 1 397 0 B Incremental (Upgrading of Informal Settlements Programme) 858 21 0 Upgrading of city rental stock

C New CRU rentals 0 154 1 644 2012/13 D People’s housing process (PHP) 1 699

E Land restitution 277 277 0 REVIEWPERFORMANCE F Social and rent to buy 28 0 G Gap 426 71 0 H Re-blocking 0 0 404 Totals 5 718 3 647 2 048 ORGANISATIONAL DEVELOPMENT ORGANISATIONAL ECONOMIC SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL APPENDICES

INTEGRATED Annual Report | 2013/14 71 A human settlements plan for the future The City of Cape Town The Integrated Human Settlements Five-Year Strategic Plan 2012/13 – 2016/17 has been reviewed with a view to the 2014/15 received the Low-Cost financial year. It defines the current housing reality in Cape Town, and focuses on various short- and medium-term objectives to Housing Project of improve existing living environments, while also creating new ones. The 2014/15 housing delivery targets set out in the plan are the Year award at the summarised below: annual Southern African Table 3.15: Integrated human settlements targets for 2014/15 Housing Federation awards ceremony held Other Top structures CRU upgrades (HSDG) at Spier Wine Estate in Sites (Human Settlements and September 2013. Project description/category (USDG) Development Grant) shared services (USDG) Rental units upgrade, CRU 1 165 Breaking New Ground, CRU, PHP, institutional, social and gap 3 039 4 692 Re-blocking and backyarders 2 440 Incremental development areas (IDAs) and emergency housing programme (EHP) 1 903 922 Gap sales 200 Estimated totals 5 142 5 614 3 605

In an effort to further explore innovative models, the Urbanisation Department has completed a tender process under the emergency housing programme to use building materials that consist of preform panels made from recycled plastic, sand and alien vegetation. The intention is to implement this model in future emergency housing programmes, where appropriate.

Programme 3.2(b): Use property and land to leverage social issues Re-blocking ensures safety of informal settlement residents The City’s re-blocking programme, in collaboration with the Community Resource Centre and the Informal Settlements Network, involves the reconfiguration of informal settlements to create firebreaks and allow for better access by service and emergency vehicles. In order to facilitate the smooth running of the re-blocking process, Council approved a policy to inform the proactive re-blocking of informal settlements in October 2013. The policy clarifies the roles of the various stakeholders and roleplayers in the implementation of the re-blocking process. Land acquisition for the achievement of housing plans This function encompasses: • the purchase of land for housing (for immediate use as • the devolution of all housing land in terms of the Housing well as banking); Act (section 19); and • transfer of land from other organs of state for housing • reserving land already owned by the City, but no longer purposes; required by the original custodian, user or line department. During the 2013/14 financial year, the City acquired 180 ha of land, which included some land parcels devolved by Province’s Department of Human Settlements. These have now been earmarked for future human settlements development and use as part of informal settlements upgrade projects. Programme 3.2(c): Partner with Province in education and school sites

The City continues to partner and collaborate with Province’s Department of Education for the possible use of education land that is not required for educational purposes. Historically generous standards for the provision of space for new schools mean that some schools have adjoining land that is not being used at all. During the year under review, discussions continued around releasing such land for development, particularly in Elsies River and Mitchells Plain. The Department of Education’s policy position of consolidating and expanding well-run schools rather than building new ones also means that land set aside for new schools is being reconsidered for development. These cases are prevalent in Khayelitsha and Eerste River. Lastly, exceptional cases being dealt with include Gordon’s Bay, the Ottery School of Special Skills as well as Matroosfontein Primary, each of which presents unique opportunities and challenges. This kind of finer-grained infill development has the added advantage of being able to use existing bulk infrastructure in the development of human settlements.

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2014 WORLD DESIGN CAPITAL DESIGN WORLD OVERVIEW OF THE CITY OF CAPE TOWN AND RISK MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, The Integrated Human Settlements Five-Year Strategic Plan defines the current housing reality in Cape Town.

Programme 3.2(d): Integrated human settlements programme An overview of the City’s integrated human settlements achievements across the various housing categories for 2013/14 follows below:

Subsidy housing 2012/13 The City initiated a number of housing developments to meet its focus on addressing settlement inefficiencies through the development of integrated human settlements that will contribute towards a more compact settlement form, and provided a REVIEWPERFORMANCE range of housing and socio-economic opportunities. The larger developments, such as Pelican Park phase 1 and Scottsdene, include subsidy, rental, affordable and open-market (bonded) housing units. Both projects are under construction and progressing well. Densification of existing infill developments remains a high – Incremental housing priority. In Delft, existing vacant residential erven (1 000) were A number of projects are under way. These include: redesigned to create 2 407 new opportunities for waitlisted • Sir Lowry’s Pass Village incremental development families. The internal services are currently under construction, area (IDA) (sites and top structures), which will provide and the building of houses will commence soon. In Happy 177 opportunities for flood-affected households

Valley, subsidy and PHP housing opportunities are provided, • Wolwerivier IDA (sites and top structures), which will DEVELOPMENT ORGANISATIONAL provide 500 opportunities and units are equipped with solar-powered geysers. • Busasa (Mfuleni) IDA (sites and top structures), which will In addition, more top structures were delivered under the house approximately 1 000 households PHP category, details of which are contained under the PHP • Kosovo (Gugulethu), which entails re-blocking for paragraph below. 80 households • Fisantekraal temporary relocation area (TRA) for approximately 285 families who have to be relocated Happy Valley development named low-cost • Masiphumelele TRA for approximately 180 families who housing project of the year have to be relocated ECONOMIC SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL The City of Cape Town received the Low-Cost Housing • The provision of interim services in the Hangberg Project of the Year award at the annual Southern African informal settlement Housing Federation awards ceremony held at Spier Wine • Wash areas in the Nomzamo and Lwandle informal areas Estate in September 2013. in Helderberg The Happy Valley housing project is an example of the The Urbanisation Department also managed to provide successful implementation of the Upgrading of Informal 2 620 tenure certificates, of a total of about 6 350, to people Settlements Programme (UISP), which permits the in Monwabisi Park as part of the incremental upgrade. STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL conversion of an informal area into a formal area. The land In addition, the ongoing need for accommodation in on which these houses were built was previously home to Blikkiesdorp is being met as and when vacancies arise. approximately 1 500 informal structures. Today, a total of Families are accommodated on an emergency-needs basis 1 452 formal houses have been built at a cost of R185 million in terms of the national policy guidelines. A few new sites for the identified beneficiaries. Funding for the project was a with incremental top structures have been developed, and joint collaboration between the City and Province. families accommodated there. APPENDICES

INTEGRATED Annual Report | 2013/14 73 The City is the only municipality in South Africa that has a dedicated Restitution Office.

Upgrades to seven of the 11 identified rental stock have been completed.

– Upgrading of City rental stock that has a dedicated Restitution Office. The administration This entails major upgrades to City-owned rental stock, including has successfully settled many of the 6 000 land restitution the refurbishment of interiors and exteriors as well as the claims lodged in its area of jurisdiction. surrounding areas of the property. The first phase of the major – Social housing maintenance upgrade is set to be completed in 2015. Upgrades The City continued to make excellent progress in implementing to seven of the 11 identified areas have been completed. All units its social housing programme. In the previous financial year, that were upgraded in areas of Scottsville, Kewtown, Scottsdene, the Social Housing Regulatory Authority recognised the City as Woodlands, Connaught, Uitsig and The Range have now been having the best-performing social housing steering committee reoccupied by tenants. Upgrades are under way in Ottery, in the country – proof of the remarkable work being done in Manenberg, Hanover Park and Heideveld, but work stoppages as terms of social housing. In addition, the City has been invited by a result of gang activity, violence, intimidation, and contractors other municipalities in the Western Cape to share its expertise defaulting on contracts remain a challenge. and guide them in the implementation of their social housing In recent years, the City’s rental stock upgrade programme programmes. During the 2013/14 financial year, the City also has garnered a number of awards, including: implemented the Ilinge Labahlali Co-op project in Nyanga. • the South African Institute of Civil Engineering award for – Gap housing the most outstanding achievement in the community- Gap housing caters to those households earning between based projects category in 2012; R3 500 and R15 000 per month, who earn too much to receive • winner in the Institute of Municipal Engineering of state housing, yet too little to have access to the private market Southern Africa/Consulting Engineers South Africa – thereby creating a ‘gap’. The demand for this market is large; excellence awards in the community upliftment category however, blacklisting is prevalent in this income group and in 2012; serves as a restricting factor. • nominated for Govan Mbeki Best Rental Stock Project This market is important, as it allows people in BNG houses to and Consulting Engineers South Africa engineering escalate to a higher level by purchasing in this market, thereby excellence awards in 2012; and starting the process of initiating stability in the BNG market. • Southern African Housing Foundation Housing Project Gap housing also broadens the rates base of the City. Well- of the Year and Institute of Municipal Engineering of located parcels of municipal land have been made available for Southern Africa Best Project award 2011. gap housing for development, and ownership passes directly – People’s Housing Process (PHP) to the purchasers. The sale of serviced plots to qualifying participants is another variation on the gap housing initiative. This process engages beneficiaries in building their own homes by maximising their housing subsidy and establishing – Re-blocking community support organisations. Currently, the City is The City continues to work with the Community Resource involved in offering certain skills to all PHP projects, including Centre and the Informal Settlements Network within the financial management, technical advisory support and partnership arrangement signed on 19 April 2012. To date, project monitoring. Going forward, the City will also become Sheffield Road, Mtshini Wam and Kukutown settlements involved in the social aspects of the project, especially during have been re-blocked to practical completion stage, and the project initiation and implementation phases, to address Flamingo Crescent to partial completion. community dynamics. The majority of housing opportunities in this category are provided in Site C in Khayelitsha. Post-fire re-blocking was undertaken at Block 8 (Philippi) and Kosovo, while a partial re-blocking was achieved at – Land restitution Masiphumelele. This directly and immediately increased the During the 2013/14 financial year, the City made good quality of lives of the people living in these areas, as they progress in settling land restitution claims in its area of are now living in drier conditions, and access is allowed for jurisdiction. The City is the only municipality in South Africa increased services as well as preventing future fires.

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Transversal Management: The future of integrated human settlements in Cape Town

During the latter part of 2013, the City, together with Province, embarked on a human settlements coordination project. 2014 A number of working groups were formed and mandated to investigate various aspects of the current systems and procedures in the housing delivery model in Cape Town. WORLD DESIGN CAPITAL DESIGN WORLD As a result of this process, a draft Integrated Human Settlements Framework (IHSF) was developed, which will inform the finalisation of a new and innovative longer-term Transversal Management of Integrated Human Settlements Planning and Delivery Plan for the City.

The IHSF proposes a number of strategic shifts and processes, such as: • Ma king a fundamental shift to the current housing delivery approach, focusing on incremental delivery that is aimed at closing the gap between housing demand and supply OVERVIEW OF • Broad proposals on how the current and new delivery programmes can be implemented effectively and sustainably THE CITY OF CAPE TOWN • Proposals on delivery approaches/options based on a variety of funding options, which are in turn based on the diversity of housing demand • Assessing these options against set criteria to achieve sustainability and community acceptance • Pr oposal of the most viable option, taking into account the need to increase quantity, whilst maintaining quality in terms of norms and standards, spatial transformation, etc. • Approaches to facilitate achievement of mixed-use and mixed-income integrated settlements • Th e way forward in terms of land acquisition, planning, budgets and engaging the private sector and community stakeholders AND RISK MANAGEMENT RISK AND Other key recommendations of the protocol include: COMPLIANCE GOVERNANCE, • A shift from ‘depth’ in delivery (providing a completed product to benefit a few) to greater ‘width’ (broader delivery to many) • Co nclusion of full accreditation for the City to manage all new human settlements delivery in Cape Town • Review of the feasibility of adjusting the current distribution of USDG funding (between housing and bulk,

connector and social infrastructure) and HSDG funding, with a view to increasing the number of housing 2012/13 opportunities that can be delivered

• Development of innovative, cost-effective top structure options suited to incremental housing provision REVIEWPERFORMANCE • Implementation of the land-banking programme as a key element of the long-term project pipeline • Putting a land acquisition mechanism in place to enable land banking • Pr oactive development of a mechanism to acquire land parcels larger than 100 ha in extent on the north-western, north-eastern and Helderberg growth corridors for land banking • Establishment of a Land Disposals Committee to coordinate, track and report on progress on the transfer of land to the City • Preparation of a long-term (30-year) human settlements plan for the city, based on current growth management work • Establishment of a transversal development facilitation work group in the transversal management system DEVELOPMENT ORGANISATIONAL • Securing private-sector partnerships for both green and brownfields development on City and privately owned land, supported by structured agreements, incentives (including land costs and development contributions), access to public funding, etc. • Expansion of the current project pipeline • Co mpletion of a comprehensive communication and stakeholder engagement plan The City has appointed an independent consultant to undertake a study to identify, test and refine the strategic objectives of the draft IHSF, investigate the feasibility of incremental top structure options, and draft a sustainable, medium-to-long-term Integrated Human Settlements Strategy for Cape Town that is in line with national legislation SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL and policy as contained in the Housing Act, Breaking New Ground policy, the Housing Code and National Government’s Outcome 8. STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL APPENDICES

INTEGRATED Annual Report | 2013/14 75 – Improving our systems to enhance delivery The City will continue Upgrades to the housing database continued during the 2013/14 financial year. This includes aligning the system with the revised to identify and promote Housing Allocations Policy, as well as cleaning up the database information by comparing it with the housing subsidy system of housing development the National Department of Human Settlements and other national databases. The number of applicants recorded as ‘waiting along approved transport for a housing opportunity’ as at 30 June 2014 was 281 074. During the year, 15 006 new housing applications were captured. and development Programme 3.2(e): Densification programme corridors in order to The City’s densification programme includes the identification zoning scheme to enable reduced parking provision support densification. of public and private land to use for property development. An in areas served by public transport, thereby promoting important component of this is growth management, which higher-density development in these areas. In 2013, includes densification, utilising the urban edge, and optimal the City also approved an Urban Design Policy, which and sustainable use of land through densification in transport will help ensure well-designed development. The City corridors and economic nodes. In support of this densification has secured a capital allocation from the Integrated programme, the City is focusing on the following: Cities Development Grant to invest in infrastructure in the identified priority public transport corridors in order • Development of a supportive policy framework – to promote development in these areas. This is also in A citywide density-related policy is supported by more support of the City’s partnerships with the private sector, detailed district-based spatial development plans, local for example the Greater Tygerberg Partnership and its density plans and urban design guidelines and policies work on the Voortrekker Road corridor and the Philippi (e.g. the Tall Buildings Policy and Public Open Spaces East Development Initiative. Policy). • Development corridors – The City will continue to • Proactive promotion of densification in prioritised identify and promote housing development along locations – The City will investigate the financial, approved transport and development corridors in order design and institutional mechanisms to facilitate the to support densification. development of affordable multistorey housing, and improve the form and quality of living environments in As part of the Upgrade of Informal Settlements Programme, subsidised-housing areas. work has already begun in Monwabisi Park, Lotus Park, BM Section and The Heights. This work will conform to the • Monitoring and evaluation – A framework for a identified requirements to remain within the urban edge, monitoring and evaluation system to assess progress while delivering optimal and sustainable use of land in with densification has been put in place. In addition to transportation corridors and economic nodes. planning so as to promote densification, the City has also implemented public transport zones as part of its

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2014 WORLD DESIGN CAPITAL DESIGN WORLD OVERVIEW OF THE CITY OF CAPE TOWN AND RISK MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, 2012/13 PERFORMANCE REVIEWPERFORMANCE

CARING CITY OBJECTIVE 3.3 ASSESS THE POSSIBLE SALE OR TRANSFER OF RENTAL STOCK TO IDENTIFIED BENEFICIARIES, USING ESTABLISHED CRITERIA ORGANISATIONAL DEVELOPMENT ORGANISATIONAL Programme 3.3(a): Rental stock upgrade Programme 3.3(b): Rental stock disposal programme programme The City continues to upgrade its existing non-saleable rental The City operates this programme as part of its efforts stock, and will work with the private sector to develop and to afford current tenants of City-owned rental properties maintain affordable rental housing units. The building of new (classified as saleable) the opportunity to purchase their rental stock and the upgrade of existing high-density hostels rental units and become owners. Efforts remain ongoing and into family units will cater for families who prefer rental have been intensified to create more awareness. housing and earn less than R3 500 per month.

Renewed focus on title deed transfers yields results SUSTAINABILITYECONOMIC The City has spent approximately R700 million of the AND PERFORMANCE FINANCIAL approved budget of R1,2 billion on an initial five-year The City of Cape Town has transferred approximately programme to undertake major refurbishment and upgrades 8 000 historic title deeds to previously disadvantaged of its rental stock. Work has been completed in Scottsville, beneficiaries over the past two years. These transfers pertained Scottsdene, Uitsig, Woodlands, Connaught and Kewtown. to older housing projects that were previously hampered from Work is also continuing or commencing in Manenberg, The finalisation by legal, conveyancing and other factors. Range, Hanover Park, Heideveld and Ottery. In the financial year under review, 3 881 title deeds were STATEMENTS This City initiative has been widely recognised as being transferred to beneficiaries of current housing projects. FINANCIAL ANNUAL innovative, and has received awards from the Southern African Housing Foundation and the South African Institution The City recognises that such transfer of title deeds is one of Civil Engineering, amongst others. Once this initiative of the greatest methods to bring redress to residents who has been completed and implemented, it is anticipated that were prohibited from owning property under the apartheid service delivery to the City’s tenants will be more efficient and regime. Therefore, the administration plans to finalise more APPENDICES staff functions streamlined. than 14 000 of these historic transfers over the coming years.

INTEGRATED Annual Report | 2013/14 77 CARING CITY OBJECTIVE 3.4 The City has chosen to set its own internal service PROVIDE FOR THE NEEDS OF INFORMAL SETTLEMENTS AND BACKYARD RESIDENCES THROUGH standards, which are IMPROVED SERVICES higher than the national In Cape Town, the greatest impact of urbanisation is evident in the backyards of established communities and informal settlements, norm, and constantly where families have settled due to circumstances beyond their control. As part of its commitment to ease this situation, the City aspires to provide has established a cross-departmental Urbanisation Work Group with the primary goal of ensuring an integrated, coordinated and collaborative approach when dealing with the city’s many urbanisation challenges. services to these higher standards. Programme 3.4(a): Anti-poverty programme In addition, rapid urbanisation makes water service delivery a constant moving target. Dedicated capital provision is made As part of the City’s Urbanisation Strategy, issues around to address this challenge, as well as to fund service delivery service delivery to the poor in informal settlements or improvements in line with the City’s higher internal delivery households living in backyards of the City’s rental stock standards and targets. are being addressed. Some of the major challenges in this regard are: In line with these, during the 2013/14 financial year, the City provided 5 916 new toilets and 2 028 new taps to customers • the location of some settlements relative to bulk living in informal settlements. This far exceeded the targets of infrastructure; 3 100 and 1 020 respectively set for this period. • increasing capacity, especially electricity supply, where infrastructure does exist; and Improving informal settlements An informal settlements development matrix has been • high densities and a lack of access to structures. developed with the aim of enhancing the planning Any UISP project also considers the economic and social process by listing all informal settlements in the city, and development opportunities it may present. Where possible, identifying which settlements require alternative land for de- when any intervention is undertaken, consideration is first densification or relocation. given to conducting the work via the EPWP, before considering In addition, the City has begun a process of granting mechanised means. incremental security of tenure. This will be initiated through Programme 3.4(b): Service delivery a systematic GIS land management tool, which allows for programme in informal settlements community registers to be spatially depicted and verified. Further phases would relate to, amongst others, issuing of Exceeding national water and sanitation standards ‘right to occupy’ certificates, which will eventually lead to The City complies with national guidelines in terms of ownership and/or rental, where permitted. providing adequate water and sanitation services to residents of informal settlements. City leads provision of sanitation in South Africa The City’s achievement of 100% access to adequate sanitation Despite this, the City has chosen to set its own internal in informal areas, as assessed by DWA in 2012, remains service standards, which are higher than the national norm, unparalleled in South Africa. and constantly aspires to provide services to these higher standards. Certain localised service delivery challenges Since the 2006/7 financial year, the City has increased the continue, for instance where informal settlements are not provision of toilets from 14 591 to more than 45 300 at the located on City property, or where new informal settlements end of June 2014, which represents an increase of 278%. develop unexpectedly – often on unsuitable land such as Additionally, in the same period of time, the budget for the floodplains. However, the City makes every effort to quickly provision of sanitation and water to informal settlements and effectively address these challenges as they arise. doubled to R521 million in 2013/14.

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2014 WORLD DESIGN CAPITAL DESIGN WORLD OVERVIEW OF THE CITY OF CAPE TOWN

The City’s achievement of 100% access to adequate sanitation in informal areas, as assessed by DWA in 2012, remains unparalleled in South Africa.

A number of other informal settlements have received • main tenants or neighbours who refuse to allow the full-flush toilets in the financial year under review. These installation of services, and backyard dwellers or main include Dunoon, Never-Never in Philippi, Imizamo Yethu, tenants moving or removing structures after they have Samora Machel, Solly’s Town, Masiphumelele and Taliban been placed; in Khayelitsha. This brings the number of full-flush toilets • the disconnection of completed toilets; and MANAGEMENT RISK AND provided to residents of informal settlements in 2013/14 to COMPLIANCE GOVERNANCE, approximately 1 300. • requests for the cancellation of service requests after A number of these toilets are maintained and serviced installations have already taken place. through the City’s janitorial programme, which started in Despite these challenges, the City is aiming to provide 2012. This programme, which is the first of its kind, has various services to 2 500 backyard dwellers in the 2014/15 seen the creation of approximately 2 600 job opportunities financial year. Targeted areas include Mitchells Plain, through the EPWP since its inception. The programme Scottsdene, Parkwood, Ocean View, Lotus River, Grassy 2012/13 continues to expand into different communities. Additionally, Park, Heideveld, Manenberg, Gugulethu, Bonteheuwel, the Water and Sanitation Department has a team dedicated Valhalla Park, Atlantis and Uitsig. REVIEWPERFORMANCE to the maintenance and repair of broken or vandalised toilets. Programme 3.4(d): Energy services programme The provision of full-flush toilets goes hand in hand with the installation of standpipes for access to water. Approximately City funds thousands of Eskom electricity connections 1 100 standpipes have been installed since 2011/12. As part of the City of Cape Town’s redress policy and its continued efforts to make Cape Town a caring and Programme 3.4(c): Backyarder service programme opportunity city for all residents, the City is currently City’s backyarder programme makes service delivery funding over 20 000 Eskom electricity connections in a reality informal settlements and TRAs.

The City’s backyarder programme, which aims to improve The current City-funded Eskom projects undertaken or DEVELOPMENT ORGANISATIONAL access to municipal services for those living in the backyards completed in the year under review included the following: of Council-owned rental dwellings, is the only one of its kind in the country. • Phases 1-3 in Enkanini, Khayelitsha: Approximately 10 600 connections will be completed, with 1 850 having Since the start of the first pilot projects in Factreton and been connected so far. Eskom envisages completing Hanover Park in the 2012/13 financial year, the City has another 1 880 connections at the start of the 2014/15 provided toilets, taps, electricity and wheelie bins to financial year. Construction on phase 3 has commenced, hundreds of households living in the backyards of City rental and will provide approximately 3 500 households with stock. The pilot project in Factreton has been completed, with electricity connections. 290 households now enjoying the benefits it offers. In total, ECONOMIC SUSTAINABILITYECONOMIC 83 toilets were installed, 188 electricity connections made • Phola Park and Never-Never, Philippi: Approximately AND PERFORMANCE FINANCIAL and 156 wheelie bins provided. 1 560 connections completed Excellent progress has also been made with the provision of • Monwabisi Park, Khayelitsha: Just over 460 City-funded water and sanitation points in Hanover Park. By the end of the connections completed 2013/14 financial year, 701 functional combined units were installed against a target of 700. • Bosasa, Mfuleni: Approximately 1 000 connections

planned for construction towards the end of 2013 STATEMENTS

These projects, however, continue to experience various time- FINANCIAL ANNUAL consuming challenges, which impede further advancement • Fisantekraal informal settlement: 1 562 connections in provision. These include: completed in May 2014 • high densities that make it difficult to find sufficient • Other areas such as Delft, Happy Valley, Wolwerivier and space to place and install services; Nomzamo APPENDICES

INTEGRATED Annual Report | 2013/14 79 CARING CITY OBJECTIVE 3.5 Water compliance has constantly exceeded PROVIDE EFFECTIVE ENVIRONMENTAL HEALTH SERVICES the City’s own internal Programme 3.5(a): Environmental health-care programme annual targets. Caring for citizens in informal settlements The City has a stated objective of ensuring that an samples constantly being analysed according to the stringent environmental health practitioner visits every informal South African National Standards (SANS 241) requirements. settlement in Cape Town at least once every week. This The water quality table below indicates the percentage translates into a total of 14 160 such visits. During 2013/14, achieved against these measures for Cape Town’s drinking this target was significantly exceeded. water between 2009 and 2014. Water compliance has To ensure that all Cape Town residents have the safest possible constantly exceeded the City’s own internal annual targets, tap water to drink, the City fully supports and complies with from 96% in 2009 to the very high 98% since July 2012. strict water quality checks as prescribed by DWA. This means Compliance is measured against prescribed chemical and that water quality must be closely monitored, with many water microbiological components.

Table 3.16: Drinking water quality in the City of Cape Town Drinking water quality percentage summary 2009/10 2010/11 2011/12 2012/13 2013/14 Quarter 1 98,7 97,0 97,0 99,1 99,1 Quarter 2 98,7 98,0 98,3 99,1 99,1 Quarter 3 98,9 98,0 98,0 99,5 99,0 Quarter 4 98,0 99,0 98,6 99,3 99,8 Source: City of Cape Town, Water and Sanitation Department.

CARING CITY OBJECTIVE 3.6 PROVIDE EFFECTIVE AIR QUALITY MANAGEMENT AND POLLUTION (INCLUDING NOISE) CONTROL PROGRAMMES Programme 3.6(a): Measuring the number of days when air pollution exceeds World Health Organisation guidelines Improving air quality During the 2013/14 financial year, the number of days The aim of this plan is to achieve and maintain clean air in when air pollution exceeded RSA ambient air quality the city over the next 10 to 20 years, and turn Cape Town into standards was zero. This is better than the stated target the African city with the cleanest air. The plan is designed to of less than 25 days for the period. The number of ‘brown reduce the adverse health effects of poor air quality on the haze’ episode days recorded depends on various factors, citizens of Cape Town, especially during brown haze episodes. including meteorological conditions, functional status The ongoing successes of the diesel vehicle emissions testing of the monitoring network, state of the economy, and programme, which has shown a reduction in failure rates of the successful implementation of the City’s Air Quality vehicles tested from 17% in 2000 to below 1% in 2014, also Management Plan (AQMP). continues to have a positive impact on ambient air quality.

The City’s Air Quality Management Plan aims to achieve and maintain clean air in the city over the next 10 to 20 years.

80 INTEGRATED Annual Report | 2013/14 CARING CITY OBJECTIVE 3.7 PROVIDE EFFECTIVE PRIMARY HEALTH-CARE SERVICES Programme 3.7(a): Primary health-care programme

Managing tuberculosis 2014 The total number of tuberculosis (TB) cases has fallen over the citizens to know their HIV status. Daily HIV testing is also last three years from a recorded high of 29 726 cases in 2010 offered free of charge at all City health facilities (as well as CAPITAL DESIGN WORLD to 25 846 cases in 2013. The drop coincides with increasing at provincial ones and through NGOs). antiretroviral coverage in the HIV-positive population. As a result, the number of adults over 15 years of age The cure rate for new smear-positive TB has been maintained tested for HIV in 2013/14 in Cape Town was over 600 000. at over 80%. The significance of this achievement is The ongoing prevention of mother-to-child transmission highlighted when viewed against the 67% achieved in 2004. of HIV (PMTCT) programme saw a continuous drop in The decentralised management of drug-resistant TB at the transmission rate to below 1,5%. Without such an primary care level has been strengthened. intervention, the transmission rate would have been in OVERVIEW OF

Continuing the fight against HIV/Aids the region of 20%. THE CITY OF CAPE TOWN The City’s efforts to address, prevent and treat HIV are encapsulated in a key strategic programme of City Health, delivered in Programme 3.7(b): Perception survey score on partnership with Province’s Department of Health and NGOs. At the provision of primary health-care services the end of June 2014, City Health offered antiretroviral therapy Health services provided by the City are important to residents (ART) at 30 of its sites throughout Cape Town. and affect how they rate the City’s overall performance. The citywide Get Tested campaign is ongoing, with The overall health score and the scores for all the health numerous outreaches taking place at regular intervals services attributes measured in the annual Community at shopping malls and other public places to encourage Services Survey have improved significantly since 2009/10. AND RISK MANAGEMENT RISK AND

Table 3.17: Health services scores in Community Services Survey COMPLIANCE GOVERNANCE, Service 2009/10 2010/11 2011/12 2012/13 2013/14 Health 2,5 2,6 2,6 2,7 2,9 You receive quality care at municipal clinics 2,4 2,6 2,6 2,7 2,9 You do not have to wait too long to be seen at municipal clinics 2,1 2,2 2,2 2,3 2,5 Municipal clinics treat you for TB, sexually transmitted infections,

and treat children that are unwell 2,7 2,8 2,8 2,9 3,1 2012/13 Municipal clinics help you to prevent illness by providing medical

services (immunisation, family planning, etc.) 2,7 2,8 2,7 2,9 3,1 REVIEWPERFORMANCE Action being taken on environmental health complaints such as unhygienic conditions 2,5 2,6 2,5 2,6 2,9 Municipal services replying quickly to environmental health complaints n/a 2,6 2,5 2,6 2,9

‘You receive quality care at municipal clinics’, ‘Action being taken on environmental health complaints such as unhygienic conditions’ and ‘Municipal services replying quickly to environmental health complaints’ are again seen as high priority areas for the City. ‘Municipal clinics help you to prevent illness by providing medical services’, ‘Municipal clinics treat you for TB, sexually transmitted infections, and treat children that are unwell’ and ‘You do not have to wait too long to be seen at municipal clinics’ are rated as medium priority areas by residents.

CARING CITY OBJECTIVE 3.8 DEVELOPMENT ORGANISATIONAL PROVIDE SUBSTANCE ABUSE OUTPATIENT TREATMENT AND REHABILITATION SERVICES Programme 3.8(a): Primary health-care programme: Number of substance abuse outpatients provided with alternative constructive behaviour Combating substance abuse The abuse of alcohol and other drugs is not only harmful to Delft South in March 2012. They have now been certified by the the users of these substances, but also negatively affects the Matrix® Institute as programmes of excellence for three years – well-being of families, communities and the broader society. In the only programmes in Africa to achieve this. October 2011, the City developed its Alcohol and Other Drug ECONOMIC SUSTAINABILITYECONOMIC

Harm Minimisation and Mitigation Strategy 2011–2014, which AND PERFORMANCE FINANCIAL details the strategic plan to minimise and mitigate the harm of alcohol and other drug (AOD) use, including tobacco. During the period under review, the outpatient substance abuse treatment sites at Tafelsig, Table View, Delft South and Town 2 clinics continued to do excellent work among sufferers of substance abuse from surrounding communities. Parkwood, as a fifth site, was launched in September 2013. Together, these STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL sites assisted 1 621 new clients during the year under review. In order to ensure the quality of the service offered in line with the Matrix® model, the Matrix® Institute of the United States assessed two of the City’s facilities. The first site to be certified was Tafelsig in April 2010 and July 2013, and the second was APPENDICES

INTEGRATED Annual Report | 2013/14 81 STRATEGIC FOCUS AREA 4

Th e iNCLUSIVE city Building a shared community across different cultural, social and economic groups is a key priority for the City of Cape Town. Key to this is ensuring that all residents feel acknowledged, heard and valued, and that the varied cultural backgrounds and practices of all Capetonians are respected and celebrated. In order to position Cape Town as an inclusive city, the following two key objectives – each with its own underpinning programmes – have been identified:

Table 3.18: IDP objectives and programmes for SFA 4 Page in Page 2013/14 in this Objective Programme Idp review report 4.1: Ensure responsiveness by 4.1(a): Managing service delivery through the service management creating an environment programme (C3 notification responsiveness) 82 83 where citizens can be communicated with, and be responded to 4.1(b): Building strategic partnerships 85 83 4.2: Provide facilities that make 4.2(a): Community amenities programme (provide and maintain) 85 84 citizens feel at home 4.2(b): Heritage programme 88 85

This review of SFA 4 offers an overview of the City’s performance against the objectives above, and its progress in terms of the implementation of the associated programmes.

Key inclusive city achievements in 2013/14 • 93,77% adherence to citywide service standards – • City call centre scored 4+ out of 5 (on the Likert scale) external notifications • Valhalla Park multifunctional recreational hub a first for • Maintained 3 253 community parks, 38 cemeteries and Cape Town 11 district parks according to service standards • Newly developed water spray parks • Maintained 465 sports fields to defined-level grass-cover • Sustained Blue Flag status for Cape Town beaches standard • Valhalla Park Library won award for the best medium- • 92 libraries open according to minimum planned open hours sized public library

The City has 36 public swimming pools.

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2014 WORLD DESIGN CAPITAL DESIGN WORLD OVERVIEW OF THE CITY OF CAPE TOWN AND RISK MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, 2012/13

Eight Cape Town beaches sustained their Blue Flag status, the highest number in South Africa. REVIEWPERFORMANCE

INCLUSIVE CITY OBJECTIVE 4.1 ENSURE RESPONSIVENESS BY CREATING AN ENVIRONMENT WHERE CITIZENS CAN BE COMMUNICATED WITH, AND BE RESPONDED TO Programme 4.1(a): Managing service delivery through the service management programme (C3 notification responsiveness)

Responding to the service needs of all citizens DEVELOPMENT ORGANISATIONAL The City’s corporate call centre answered a total of 903 450 An independent service provider conducted a customer calls during the 2013/14 financial year. The calls were satisfaction survey among users of the City’s call centre in answered in customers’ preferred language (English, 2013. The call centre achieved a score of 4+ out of 5 on the Afrikaans or Xhosa) and the majority related to accounts Likert scale. The residents indicated that they experienced and service enquiries and requests, as well as motor vehicle consistently excellent customer service from the call centre. registration and traffic fines. The Customer Relations Department also made a concerted The Customer Relations Department continued to install effort to improve its correspondence and quality assurance FreeCall lines in municipal buildings, such as housing offices, systems and processes during this period, in order to further

improve customer satisfaction levels. SUSTAINABILITYECONOMIC

libraries and community centres, in outlying areas and less- AND PERFORMANCE FINANCIAL advantaged communities. New FreeCall lines have been Programme 4.1(b): Building strategic launched in areas such as Sir Lowry’s Pass Village, Hangberg partnerships and Mitchells Plain. By 30 June 2014, a total of 94 FreeCall lines had been installed with the aim of improving access to service The City is committed to working closely with the provincial delivery through the City’s call centre. Residents can use the and national spheres of government to put the needs of FreeCall lines to report faults, register complaints and make Cape Town’s citizens first. To achieve this, it engages with enquiries at no personal cost. Province at various formal and informal forums. Functional STATEMENTS

partnerships, such as the development of integrated FINANCIAL ANNUAL In addition, the Customer Relations Department embarked human settlements and the City Health programme, are on another call centre support learnership for unemployed pursued at sector level, while the City formally engages job seekers in cooperation with an external service provider. Province and other municipalities through the Premier’s As a result, altogether 30 learners have received call centre Coordinating Forum at a political level, as well as by knowledge and practical working experience within the means of the IDP indabas and MTECH committees at an municipal working environment. administrative level. APPENDICES

INTEGRATED Annual Report | 2013/14 83 INCLUSIVE CITY OBJECTIVE 4.2 PROVIDE FACILITIES THAT MAKE CITIZENS FEEL AT HOME Programme 4.2(a): Community amenities programme (provide and maintain)

Maintenance and upgrade programme keeps city facilities in top condition During the year under review, the City continued to maintain and upgrade its community facilities for the benefit of all Capetonians. Specific upgrades to sport and recreation facilities completed over the past three years include the following: • Upgrades to resorts at Blue Waters, the Monwabisi coastal node and Soetwater • The construction of sports complexes in Masiphumelele, Wallacedene, Imizamo Yethu and Dunoon at a cost of R13,1 million, as well as upgrades at Witsand, while the development of the new spectator stand at the Lwandle sports complex in Strand and the upgrade of the Sea Wind sports complex have commenced • Major repairs at the Malibu sports field in Blue Downs as well as the Bellville Stadium, amounting to nearly R2,5 million • The installation of 12 full-sized synthetic soccer pitches and nine five-a-side synthetic pitches totalling more than R60 million. This includes pitches that were completed at Westridge, Nyanga, Scottsdene, Gugulethu and Langa in the past year. Work has also commenced at Steenberg, Heideveld, Crossroads and Kewtown, which is expected to be completed in the coming year. • The upgrade of the Masibambane hall

Valhalla Park multifunctional recreational hub a first for Cape Town The Valhalla Park family recreation centre officially opened on 9 December 2013. This pilot centre includes a full-size synthetic soccer pitch, a club house, a BMX track, playgrounds, outdoor gym areas, a spray park, changing rooms, ablution facilities, outdoor reading rooms, two mini-soccer pitches, two multipurpose courts and a multitude of landscape architecture features. The project cost more than R32 million.

City makes a splash with newly developed spray parks As part of the City of Cape Town’s commitment to facilitating redress and providing recreational spaces where communities can thrive, a number of unique spray parks were developed in the financial year under review. The parks, situated in Dunoon, Ocean View, Scottsville, Khayelitsha, Valhalla Park and Nyanga, were constructed at a total cost of approximately R18 million.

Blue Flags for Cape Town beaches Eight beaches across Cape Town were awarded coveted Blue Flag status for the season from 1 December 2013 to 31 March 2014. They were: • Bikini; • Llandudno; • Mnandi; • Camps Bay; • Strandfontein; • Clifton 4th; and • Muizenberg; • Silwerstroom. This means that the City had the highest number of Blue Flag beaches in South Africa.

Upgrades to parks and cemetery facilities Cemeteries Parks • Upgrades were undertaken at Maitland, Rusthof, Atlantis, • Upgrades to district parks were completed at Nantes Gugulethu and Wallacedene, with extensions conducted (Athlone) and Jack Muller parks, the Khayelitsha wetlands at Welmoed, Klip Road and Delft. park, the Company’s Garden and the Durbanville rose garden. • Vaalfontein is in the process of being developed. • Upgrades to community parks were completed at Elizabeth • Development of the new Maitland crematorium will Park, Hanover Park and Westridge Gardens, whilst the commence in the next financial year. upgrade at Mandela Peace Park in Delft has commenced. • Smaller upgrades were completed in Bellville, Brown’s Farm, Kuils River, Kraaifontein, Mfuleni, Samora Machel and Vrygrond.

Growing goodness in the heart of the city Community food gardens are not new to Cape Town, but a demonstration vegetable garden in the heart of the city is. Thanks to the ‘out-of-the-box’ thinking encouraged by the World Design Capital designation, the iconic Company’s Garden, one of Cape Town’s earliest landmarks, is transforming what was previously a car park into a heritage food garden. The vegetable garden will showcase the historical origins of the Company’s Garden as a food source. Once completed, it will be a working vegetable and herb garden, which will include historical herb varieties, fruit trees and vegetables, a demonstration food garden, an edible indigenous plant garden and an indigenous medicinal herb garden. The garden will be an important means of educating visitors about urban agriculture, as well as the medicinal properties of herbs and vegetables. This innovative World Design Capital project will highlight the need for urban food gardens, and promote the development of community gardens in undeveloped public open spaces around the city.

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2014 WORLD DESIGN CAPITAL DESIGN WORLD OVERVIEW OF THE CITY OF CAPE TOWN AND RISK MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE,

The City now boasts 100 libraries.

Library facilities upgrades and achievements 2012/13 Construction of the new Kuyasa regional library complex and has made a difference to its surrounding community. in Khayelitsha began in September 2013. This R54 million Other nominees for the award included the Masiphumelele REVIEWPERFORMANCE project on Walter Sisulu Road in Kuyasa underscores the and Observatory libraries. City’s pledge to provide world-class facilities to residents in The City now boasts 100 libraries with the following standard previously disadvantaged areas. opening hours: An upgrade to the Crossroads library, which is expected to • 76 community libraries to be open 35 hours per week extend over a number of years, also commenced in the year under review. • 22 regional libraries to be open 45 hours per week During the year under review, Valhalla Park Library won the • Two citywide libraries to be open 63 hours per week award for the best medium-sized public library in the province.

• Three satellite libraries DEVELOPMENT ORGANISATIONAL The award is given to the public library that demonstrates excellence in marketing, promotion and outreach activities, • A mobile service consisting of three buses Programme 4.2(b): Heritage programme In 2013, the City of Cape Town was the first local authority in South Africa to have its heritage-related competency approved in terms of the National Heritage Resources Act. The competency approval is for all assigned local authority functions relating to heritage resources management, including the administering of heritage areas, sites on the register, identifying and mapping heritage places, and issuing provisional protection orders for sites under threat. The heritage protection overlay zone was developed and approved, along with the system of exemptions as part of the new CTZS.

A total of 19 district environmental control officers have been designated by Heritage Western Cape as heritage inspectors in SUSTAINABILITYECONOMIC terms of the National Heritage Resources Act. In addition to their role in controlling outdoor advertising, these staff are now AND PERFORMANCE FINANCIAL authorised to intervene where activities cause damage to a heritage resource in the city. Highlights for the 2013/14 financial year included: • Five new heritage surveys completed • Restoration of a historical building in Mamre completed, having used traditional building techniques and trained • Slave Route brochure produced local craftsmen and -women. The building is now used • New interpretive signage installed at various heritage as a visitor centre and a biodiversity management office STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL sites, including Krotoa Place, Greenmarket Square, Helen • Heritage overlay zone came into effect on 1 March 2014 Suzman Boulevard and Langa as part of the CTZS, and provides for heritage areas in • Mapping of rural landscapes of Somerset West completed terms of the National Heritage Resources Act • Refurbishment and fencing of the Langa Pass Office completed APPENDICES

INTEGRATED Annual Report | 2013/14 85

SFA 5– The well-runcity ORGANISATIONAL DEVELOPMENT 88

Thll e we -run city The City is committed to Only by ensuring that elected leaders and officials serve the interests of the public at all times can a fully democratic and accountable being accountable for the government be established. The City is committed to being accountable for the resources it manages, being answerable and resources it manages, accessible to the people at all times, and maintaining the highest levels of efficiency. being answerable To ensure that Cape Town is a well-run city, the following three key objectives – each with its own underpinning programmes – and accessible to the have been identified: people at all times, and maintaining the highest Table 4.1: IDP objectives and programmes for SFA 5 levels of efficiency. Page in Page 2013/14 in IDP this Objective Programme review report

5.1: En sure a transparent 5.1(a): Transparent government (oversight) programme 91 89 government, and work towards eradicating corruption 5.2: Establish an efficient 5.2(a): Hu man resources, talent management and skills development 92 90 and productive programme (integrated talent management approach) administration that prioritises delivery 5.2(b): Human resources strategy 93 93

5.2(c): Annual community satisfaction survey (CSS) 95 94

5.2(d): In formation and knowledge management framework – 95 94 Development Information Resource Centre (DIRC)

5.3: En sure financial 5.3(a): Financial management programme 95 97 prudence, with clean audits by the 5.3(b): Internal management processes 96 97 Auditor-General

This review of SFA 5 offers an overview of the City’s performance against the objectives above, and its progress in terms of the implementation of the associated programmes.

Key well-run city achievements in 2013/14 • Scored 2,9 out of 5 on the annual citywide customer • 96,85% of workplace skills plan budget spent satisfaction survey • Received high investment rating of Aa3 from independent • 65,55% of people from employment equity target groups rating agency employed in the three highest levels of management

The vacancy rate for the City is just over 9%, which is the lowest of all South African metros.

88 INTEGRATED Annual Report | 2013/14 WELL-RUN CITY OBJECTIVE 5.1 ENSURE A TRANSPARENT GOVERNMENT, AND WORK TOWARDS ERADICATING CORRUPTION Programme 5.1(a): Transparent government (oversight) programme 2014 Maintaining the independence and effectiveness of the Audit Committee Internal Audit is an independent department of the City of Cape Town, and is a significant contributor to governance within the City. This function is a requirement of the MFMA and King III, which Council formally adopted. Internal Audit is largely directed CAPITAL DESIGN WORLD by the IIA’s international standards for the professional practice of internal auditing. The Department is mandated through its charter (terms of reference) to provide independent, objective assurance and consulting services, geared towards adding value and improving the City’s operations. Internal Audit helps the organisation accomplish its objectives by bringing about a systematic, disciplined approach to evaluating and improving the effectiveness of risk management, control and governance processes. More details on the role, functions and performance of Internal Audit during the 2013/14 financial year appear on page 26 of this report. Enabling easy reporting of fraud and corruption OVERVIEW OF The City has a well-established 24/7 hotline for reporting fraud and corruption. The 24/7 hotline is managed by an independent, THE CITY OF CAPE TOWN external service provider. Other reporting mechanisms for allegations of fraud and corruption include letters, faxes, walk- in facilities, telephone calls, e-mails and other electronic communication media, such as Webmail, Facebook and Twitter. All allegations received are reviewed by the Chief: Forensic Services and logged and scheduled for submission to the City Manager in terms of his delegated authority. AND RISK MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, 2012/13 PERFORMANCE REVIEWPERFORMANCE ORGANISATIONAL DEVELOPMENT ECONOMIC SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL

In its strive to be a well-run city, it is key for Council to be an efficient and productive administration. APPENDICES

INTEGRATED Annual Report | 2013/14 89 WELL-RUN CITY OBJECTIVE 5.2 Managing talent remains a challenge for the City, ESTABLISH AN EFFICIENT AND PRODUCTIVE ADMINISTRATION THAT PRIORITISES DELIVERY as it competes globally Programme 5.2(a): Human resources, talent management and skills development programme to attract and retain (integrated talent management approach) engineers, nurses, planners and a range of Overview of human resources other related skills. At the end of June 2014, the City had 26 148 employees. This The City’s overall turnover in employees remains low, with represents an increase of 3,27% over the previous financial the turnover in scarce-skills categories at 5,78%. The overall year, and is aimed at keeping up with increased demands growth of employees in the same categories was 3,96% over for service delivery. Where there are skills gaps, these very the financial year, indicating an increase in the City’s skilled quickly translate into a negative experience for Cape Town’s workforce and a reduction in risk. citizens. The vacancy rate for the City is just over 9%, which Developing people through training and is the lowest of all South African metros. coaching While the City’s staff complement is highly diverse, it The City continues to invest in staff development, and still faces numerous challenges in terms of transforming achieved a 99% spend on its corporate programmes and its equity profile across skills and managerial levels. For 96,85% on all training programmes. this reason, the City prioritises internal development of staff as well as the active provision of career opportunities Two new training programmes for leadership and to women and people with disabilities, with a view to management development were launched. Line departments accelerating the transformation of its diversity profile, are enthusiastically supporting them. The City continues particularly at senior levels. to partner with a leading academic institution to provide a programme tailored to meet local government needs. Attracting and developing talent A business coaching programme was implemented in the last Managing talent remains a challenge for the City, as it financial year, and the City now boasts 48 internal business competes globally to attract and retain engineers, nurses, coaches to support key areas of performance and assist with planners and a range of other related skills. While attracting staff career development and job satisfaction. external talent is a very important component of business continuity, retaining and growing existing talent is far more A total of 25 027 training interventions were implemented reliable. Therefore, investment in staff development and across the City in the period under review, and 2 200 internal skills upgrades remains a priority. bursaries were granted. The City approved a new Recruitment and Selection Policy Effective performance management to support a more robust talent attraction process with All senior professionals and managers in the City are required flexible staffing options and inclusion of probation. A to participate in an individual performance management total of 3 223 new appointments were made in the year system aimed at monitoring and improving performance under review, ensuring that the City remains in the top 50 and identifying developmental gaps and opportunities. This employers of choice nationally amongst undergraduates programme is now ready to be rolled out to the next level of and young professionals. staff, namely junior professionals and senior supervisors.

While attracting external talent is a very important component of business continuity, retaining and growing existing talent is far more reliable.

90 INTEGRATED Annual Report | 2013/14 Enabling employee engagement

The City undertakes one of the biggest employee surveys of budget constraints, service delivery protests and the in the country. With approximately 30% of employees general stress of the current economic environment. participating, the results are very reliable. This dedication was reflected in the following survey results: 2014 The latest survey showed that overall employee engagement • 69% are highly motivated to work well levels remained fairly stable. In the ‘fully engaged’ category, • 76% go above and beyond the call of duty in performing the level of engagement dropped from 37% to 34,6%. their work CAPITAL DESIGN WORLD However, the overall levels of engaged staff went up slightly • 85% give 100% when they are at work from 54,4% to 55,5%. This shift in engagement was attributed to staff doing more with less, and feeling that the intrinsic • 76% are proud to work for the City of Cape Town rewards were lacking. • 74% believe the City is a leader in the government sector For ratepayers, this indicates that employees continue to What City employees desire, however, is internal and external prioritise service delivery, even under very difficult conditions recognition for this dedication. OVERVIEW OF

Table 4.2: City of Cape Town total workforce profile as at 30 June 2014 THE CITY OF CAPE TOWN

Foreign Permanent staff Male Female nationals

Occupation Total Total level African Coloured Indian White male African Coloured Indian White female Male Female TOTAL

Top management 1 3 4 8 3 2 5 13

Senior management 8 19 32 59 5 8 9 22 20 101 MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, Professionally qualified and experienced specialists and middle management 136 547 25 668 1 376 87 216 12 217 532 14 9 1 931

Skilled technical and academically qualified workers, junior management, 2012/13 supervisors, foremen and

superintendents 751 2 821 29 863 4 464 791 1 387 18 488 2 684 1 9 7 158 REVIEWPERFORMANCE

Semi-skilled and discretionary decision-making 1 785 4 537 12 310 6 644 1 088 2 132 18 345 3 583 35 9 10 271

Unskilled and defined decision-making 1 651 2 615 4 18 4 288 532 711 2 2 1 247 5 5 540

4 332 10 542 70 1 895 16 839 2 506 4 454 50 1 063 8 073 75 27 25 014

Foreign ORGANISATIONAL DEVELOPMENT Temporary staff Male Female nationals

Occupation Total Total level African Coloured Indian White male African Coloured Indian White female Male Female TOTAL

Top management 0 0 0

Senior management 11 0 1

Professionally qualified and ECONOMIC SUSTAINABILITYECONOMIC experienced specialists and AND PERFORMANCE FINANCIAL middle management 11 2 13 4

Skilled technical and academically qualified workers, junior management, supervisors, foremen and superintendents 30 27 1 9 67 119 59 1 16 195 2 1 265 STATEMENTS

Semi-skilled and discretionary FINANCIAL ANNUAL decision-making 77 151 9 237 99 85 6 190 1 428

Unskilled and defined decision-making 120 156 12 288 69 70 1 5 145 2 1 436

227 334 1 32 594 287 216 2 28 533 5 2 1 134 APPENDICES

INTEGRATED Annual Report | 2013/14 91 Table 4.3: Total number of City employees with disabilities as at 30 June 2014

Foreign Male Female nationals Occupation level African Coloured Indian White African Coloured Indian White Male Female TOTAL

Top management 00000001001

Senior management 00010000001

Professionally qualified and experienced specialists and middle management 3 9 1 24 0 2 0 5 0 0 44

Skilled technical and academically qualified workers, junior management, supervisors, foremen, and superintendents 5 36 1 23 4 23 0 18 3 0 113

Semi-skilled and discretionary decision-making 10 46 0 12 10 20 1 18 1 0 118

Unskilled and defined decision-making 14 41 0 1 4 9 0 1 0 0 70

TOTAL PERMANENT 32 132 2 61 18 54 1 43 4 0 347

Temporary employees 00000000000

GRAND TOTAL 32 132 2 61 18 54 1 43 4 0 347

Employment equity The City’s Employment Equity Department continues to exceed its performance targets and to contribute towards the general success of the City across all its strategic focus areas. One of the achievements was showcased as an initiative for the World Design Capital 2014.

The City prioritises internal development of staff as well as the active provision of career opportunities to women and people with disabilities with a view to accelerating the transformation of its diverse profile.

92 INTEGRATED Annual Report | 2013/14 Table 4.4: Employment equity initiatives in 2013/14 financial year

Performance indicator Activities in 2013/14

Gender equity • An annual recognition awards event was held to celebrate National Women’s Month. Five departments and seven individuals received recognition certificates for their contribution to the development and empowerment of women in support of the 2014 achievement of gender equality within the City.

• Twelve awareness sessions were conducted, focusing on: CAPITAL DESIGN WORLD – sexual harassment in the workplace; – the role of men in support of women’s empowerment to achieve gender equality; and – the role and challenges of youth in management/leadership roles in achieving a gender-sensitive work environment within the City of Cape Town. • A gender sensitisation training manual was developed and an initial training session conducted with members of the Citywide gender forum. OVERVIEW OF • In partnership with the Labour Relations Department, monthly information and educational awareness sessions on sexual harassment were conducted for staff throughout the City. THE CITY OF CAPE TOWN

Diversity programme • A total of 20 staff members from various City directorates were identified as ambassadors for diversity. The group was taken on a guided educational tour of the slave route and heritage sites to further develop their understanding of our rich and diverse heritage. • Diversity facilitators conducted 67 workshops, which were attended by 1 103 staff members from various departments.

Disability management • Awareness presentations were conducted across all City directorates as part of the induction, employment equity awareness programme and anti-discrimination programmes. • Disability management is covered in all workshops. AND RISK MANAGEMENT RISK AND • Quarterly reports on the employment and retention of people with disabilities were tabled at the Corporate Services Portfolio COMPLIANCE GOVERNANCE, Committee meetings, with achievement of 1,33% of staff complement. • The auditing of buildings for universal accessibility has been fast-tracked. The initial target of 60 was increased to 90. However, the City exceeded this target by completing audits of 93 buildings. • An International Day of Persons with Disability took place on 3 December 2013. It focused on the integration of disability in the workplace, and involved presentations and panel discussions by internal experts in the field of transport, occupational health,

safety and wellness, recruitment and selection, and employment equity. 2012/13 • The Employment Equity Department designed a pledge in connection with persons with disabilities, which was signed by the City Manager, executive directors, Alderman D Qually and Michael Siyolo, who all committed themselves to the employment, REVIEWPERFORMANCE retention and integration of persons with disabilities. • Three certificates of achievement for the employment and retention of persons with disability were handed to directorates who exceeded their targets in these fields. These were Corporate Services, Finance, and the Office of the City Manager.

Affirmative action • Staff profiles indicating employment equity target achievements are supplied to Human Resources and all line directorates on a monthly basis to guide them in the process of recruitment and selection. • A total of 46 affirmative action presentations were conducted, mainly to staff and senior management in different directorates and departments. • Monthly employment equity training was provided to all line managers in the Water Services Department.

• Summaries of the Employment Equity Act are displayed on all floors in the Civic Centre (Tower Block) and distributed to other ORGANISATIONAL DEVELOPMENT City buildings as well. • Three additional employment equity/education, training and development forums were established and supported. • The City’s annual employment equity reports were submitted to the Department of Labour on time.

Programme 5.2(b): Human resources strategy The City’s single biggest budget item is staff costs, which of the system is at 82%, resulting in reduced transactional currently amount to approximately R8,9 billion per annum. This turnaround and improved overall staff productivity.

is a very worthwhile investment, since the City’s staff members SUSTAINABILITYECONOMIC are its most valuable asset. The HR strategy is aimed at ensuring • The number of employees linked to the electronic AND PERFORMANCE FINANCIAL that this asset is optimally utilised, motivated and developed. In clocking system increased from 92% to 95%. This resulted the year under review, the ongoing roll-out of smart electronic in improved data integrity, reduced audit queries and systems delivered the following outputs in line with the strategy: improved overall governance. • A reduction in absenteeism from 4,45% to 4,3% • Piloting of Texthire, an automated response-handling system for recruitment, which increases accessibility to • The call resolution rate for the 27 042 calls staff made to applicants and hugely reduces turnaround times in filling the HR Service Desk remained high, at 87,27%. STATEMENTS

posts. In the first pilot, the City received approximately FINANCIAL ANNUAL • Formal roll-out of the SAP Learning Solutions module (LSO) 40 000 applications, compared to approximately 20 000 with e-learning as part of the initiative. As a result, the City via the previous, manual process. External applicants has saved significantly on fees pertaining to training venue, registered on the City’s e-recruitment system increased logistics and the printing of training request forms. Usage from 74 521 to 88 389. APPENDICES

INTEGRATED Annual Report | 2013/14 93 • Ongoing enhancement of management and employee form the new Occupational Health, Safety and Employee Wellness Another successful self-service (ESS) functionality (e.g. uploading of sick- Department headed by a director. The core business of the ‘Driver of the Year’ leave certificates) department is to provide a service to staff and line management competition was held. that will ensure their safety, health and wellness while at work. • Smart terminals with ESS functionality have been piloted for health clinics. The pilot project provides a dedicated Some of the department’s achievements during the year computer station at clinics, where staff can log onto ESS under review included: and manage their human resources transactions, such as • Hosting 37 wellness events, focusing on the well-being leave applications. of employees. Programme 5.2(c): Annual community • Celebrating the 10th anniversary of the Employee satisfaction survey (CSS) Wellness Clinic, the first for a municipality. • Further integrating the approach towards occupational, Listening to the community health, safety and employee wellness-related issues. The annual CSS measures residents’ perceptions of the City’s • Various sessions were held with line management, Health performance in delivering a range of services. The research has and Safety representatives and chairpersons of Health shown consistent improvement in residents’ perceptions since and Safety Committees to enhance the understanding the initial survey of 2007/8. In 2013/14, the City scored 2,9 on of their role and function to create a safe and healthy a five-point scale on its annual citywide CSS. This score is the work environment. A total of 785 staff attended these workshops. average rating for the City’s overall performance by residents who participated in the survey. The 2013/14 score represented • Development of two toolkits for Health and Safety an increase from the 2,7 achieved in 2011/12 and 2010/11, 2,6 and Construction work to ensure compliance with the in 2009/10 and 2008/9, and 2,4 in 2007/8. An overview of the Occupational Health and Safety Act, 85 of 1993 as results of the survey is included in the Governance, Compliance amended. A total of 537 managers and project managers and Risk Management section of this report, on page 29. were trained during this period. • Regular coaching sessions were held with Health and Programme 5.2(d): Information and knowledge Safety Committees to ensure that it functions effectively. management framework – Development • Another successful ‘Driver of the Year’ competition was Information Resource Centre (DIRC) held. Driver awareness talks are conducted daily at the Fleet Risk Control Division to encourage safe driving awareness. Developing a solid information and knowledge framework Occupational Health and Safety is also presented at the In the period under review, the Development Information Management Accountability Training Programme. Resource Centre (DIRC) portal was enhanced and additional • Occupational Health and Safety Advisors were trained in content loaded. The DIRC is a corporate resource for OHSAS 18001 in preparation for the implementation of departments to contribute and extract information. As such, an occupational health and safety management system. it constitutes a single source of information and reporting, • A new GAR 6 agreement was concluded with the trade which allows for the smooth sharing of knowledge across unions covering the nomination, election and functioning departments, and improves the way the City does business. of health and safety representatives. The City utilises aerial imagery to monitor the growth of • Decrease of 20% in the number of reported injuries on informal settlements as well as to support planning and duty as measured over the period since January 2012. service delivery. The latest aerial photography was made • A comprehensive survey was done on all workers available in the 2013/14 financial year via the City’s GIS viewer. facilities. All identified shortcomings are being It reflects continuous advancements and improvements in addressed by line management. image quality through the application of new technology. • An increase in lifestyle illnesses was diagnosed by the Occupational Health, Safety and Employee Wellness occupational health division. These illnesses include high blood pressure, diabetes and poor vision. The In the 2013/14 financial year, the Occupational Health, Safety affected staff were educated and referred to their general (OHS) and Employee Wellness (EW) branches were realigned to practitioner for further treatment.

94 INTEGRATED Annual Report | 2013/14

2014 WORLD DESIGN CAPITAL DESIGN WORLD

Specialised Technical Services Specialised Technical Services is an enabling department • Provision of advice to line management to OVERVIEW OF that provides services, consultancy and advice to all City line implement the Fleet Management Policy aimed at directorates to enable them to achieve their service delivery correct use and care of the vehicle fleet. THE CITY OF CAPE TOWN goals. The Department comprises Facilities Management, • Compiling and managing tenders for Devolved Fleet Management, and Specialised Radio and Electronic Fleet, including purchasing of vehicles, plant and Services (SPEARS). related equipment. • Purchase of new vehicles and modification into In the 2013/14 financial year, Specialised Technical Services specialised response vehicles for Emergency spent 99% of its capital budget and achieved a score of Services e.g. camera response, anti-riot staff 99,93% in the asset verification process. vehicles, ‘ghost’ high-performance vehicles and Facilities Management is responsible for managing superbikes, emergency response vehicles, etc. 96 corporately owned buildings, including a portfolio of • Refurbishment and restoration of old fire-fighting AND RISK MANAGEMENT RISK AND leased-in buildings across the city. Critical interventions in vehicles for Fire and Rescue Services COMPLIANCE GOVERNANCE, the past financial year included the following: SPEARS is responsible for all radio communications and the • Construction of a Mezzanine Floor at Cape Town Civic following electronic services throughout the city: Centre, 4th Floor; Tower Block. Additional office space • A terrestrial trunked radio communications system with of 1 400 m2 was realised, contributing to a reduced 32 remote sites and 10 800 internal emergency and requirement for leased space.

municipal service users as well as some 1 800 external 2012/13 • Office buildings for Libraries and Information Services – users from surrounding government organisations. 2 690 m . REVIEWPERFORMANCE • Closed-circuit television (CCTV) systems with 2 800 • Replacement of the roof at the Hillstar Waterworks cameras to ensure maximum security at 350 facilities Building – 4 900 m2 and depots • Replacement of the Pinelands roof – 1 500 m2 • Security alarm systems to monitor all Council facilities, with 2 000 remote sites • Installation of phase 1 of the Facility Management Enterprise System and Building Management System at • Electronic services, including 44 access control systems, the Cape Town Civic Centre nine fire detection systems, 80 public address systems, an audio-visual support service for the executive suites • A number of projects to address building compliance and the Council chamber in the Civic Centre, and an requirements and prolong the life span of the Cape Town

identification and access control card manufacturing ORGANISATIONAL DEVELOPMENT Civic Centre. These included: facility for all 26 148 employees • Upgrade to 28 passenger lifts During the 2013/14 financial year, SPEARS further developed • Replacement of four escalators infrastructures and completed the following projects: • Repairs to the podium roof • Upgrade of the electrical switchgear • Commissioned approximately 700 CCTV cameras at • Upgrade of the access control system 80 new sites. Fleet Management is responsible for managing approximately • Upgraded the public address system for the Council 3 424 corporate vehicles and plant, including: the purchase, chamber.

disposal and deployment of such assets; the implementation SUSTAINABILITYECONOMIC

• Upgraded the public address system for the Athlone AND PERFORMANCE FINANCIAL and management of various services such as vehicle repairs stadium. and maintenance; on-road vehicle refuelling; and vehicle tracking and usage monitoring. In the past year: • Initiated a project to replace the public address system of the Good Hope Centre. This is expected to be completed • Approximately R48,4 million was spent on capital in 2014/15. purchases of vehicles and plant for both the Corporate and Devolved Fleets. • A project to introduce a Facility Management Enterprise • 3 424 vehicles were managed by STS Fleet. Management System (FMES) was initiated for the Cape Town Civic STATEMENTS processes included: Centre. This system integrates all the systems and allows FINANCIAL ANNUAL for central monitoring and reporting across CCTV, access • Monitoring of vehicle performance and utilisation control, security alarms, air conditioning, power, lighting, through on-board computers fitted to vehicles. and others. • Training of supervisors to enable direct access to vehicle management reports. APPENDICES

INTEGRATED Annual Report | 2013/14 95 Information systems and technology (IS&T) The City’s information and communications technology (ICT) accessible via mobile devices. These services can be accessed systems are acknowledged nationally and internationally for via the City’s official mobi-site, and offer a platform to which the manner in which they enable the City to deliver services. additional mobile services will be added to complement As a strategic department in the City, IS&T aims to be a catalyst web services already available through the e-services portal. for the transformation of public services, and will enable the Through projects such as these, the City’s IS&T Department City of Cape Town to become a more efficient and effective continued to deliver on its ‘smart’ city strategy, and helped to: local authority. • improve the efficiency of the administration; Web and mobile services • improve services to citizens and businesses; and Building on the solid transactional platform that the City’s ICT systems provide, the web services were extended and made • enable social and economic development.

Broadband connectivity and digital inclusion are fundamental to creating an enabling environment for business development, economic growth and social cohesion.

96 INTEGRATED Annual Report | 2013/14 Responsible management of service providers WELL-RUN CITY OBJECTIVE 5.3 ENSURE FINANCIAL PRUDENCE, WITH CLEAN The Municipal Systems Act allows a municipality to enter into AUDITS BY THE AUDITOR-GENERAL a service delivery agreement for the provision of a municipal service in its area. Service delivery agreements may be Unqualified and clean audit entered into with the following external service providers: 2014 The City of Cape Town received an unqualified audit opinion, as • A municipal entity

well as a clean audit status, from the Auditor-General of South CAPITAL DESIGN WORLD Africa for the 11th and 2nd consecutive years respectively. • Another municipality This confirms the City’s substantial adherence to governance laws, regulations and controls that are in place to ensure • An organ of state (including a water services committee accountability by political and administrative leadership. established in terms of the Water Services Act 108 of 1997, a licensed service provider registered or recognised in Programme 5.3(a): Financial management terms of national legislation, and a traditional authority) programme • A CBO or other NGO legally competent to enter into such Financial oversight over CTICC an agreement OVERVIEW OF THE CITY OF CAPE TOWN The City of Cape Town holds shares in the Cape Town International • Any other institution, entity or person legally competent Convention Centre (CTICC). As the majority shareholder, the City to operate a business activity is the parent municipality of the CTICC, which makes this state- owned company (as per the Companies Act) a municipal entity. In all such instances, service delivery agreements are prepared In compliance with legislative responsibilities placed on the City and serve as contracts between the City of Cape Town and as the parent entity, oversight is exercised over CTICC governance. the service provider. Section 81 of the Municipal Systems This requires, inter alia, ongoing monitoring of the finances of the Act defines the responsibilities of the municipality when CTICC, which is one of the few convention centres in the world providing a service through a service delivery agreement with that does not require an annual operating subsidy from any an external mechanism. outside supporting organisation. The City’s consolidated financial In keeping with the requirements of the Act, the City of Cape MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, statements also include the financial statements of the CTICC. Town remains responsible for: Programme 5.3(b): Internal management • regulating the provision of the service in terms of processes programme section 41 of the Systems Act; The management accountability programme focuses on training • monitoring and assessing the implementation of the current managers (levels 1 – 4) in identified core corporate service delivery agreement, including the performance administrative business processes. Newly appointed managers 2012/13 of the service provider in terms of section 41 of the Act; undergo induction training to ensure that they understand their accountability prior to assuming their management roles. • performing its functions and exercising its powers REVIEWPERFORMANCE in terms of chapter 5 and 6 of the Act if the relevant A total of 1 046 managers attended various management municipal service falls within the development priorities accountability programme modules in the course of the year or objectives of the municipality’s IDP; and under review. • monitoring and auditing a system that is used to pass The programme, which contributes to improved governance on to a service provider funds for the subsidisation of across managerial levels, has generated great interest services to the poor (section 81(2)(b) of the Systems Act). nationally, with requests for the City to share the programme with the National Department of Cooperative Governance and The City is busy performing a pilot project to automate the Traditional Affairs as well as other local authorities. monitoring of service providers. ORGANISATIONAL DEVELOPMENT ECONOMIC SUSTAINABILITYECONOMIC FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL

The City of Cape Town holds shares in the Cape Town International Convention Centre. APPENDICES

INTEGRATED Annual Report | 2013/14 97

Overview of the2014/15budget Overview of FINANCIAL PERFORMANCE AND ECONOMIC SUSTAINABILITY 100

1% 12% OPERATING BUDGET 21% Government grants 12% Property rates Service charges Other own revenue 54% Investment revenue

CAPITAL BUDGET 16% Internally generated funds 40% National Government Contributions and donations 38% Borrowing Provincial Government

5% 1%

Figure 5.1: Funding of the City of Cape Town’s budget

100 INTEGRATED Annual Report | 2013/14 How is it spent?

2014 WORLD DESIGN CAPITAL DESIGN WORLD OVERVIEW OF R20,00 R15,57 R14,36 THE CITY OF CAPE TOWN R61,91 R197,95 R59,10 R57,72 R52,58 R197,80 R45,98 R180,49 R96,52

City Health and Marketingand Tourism, Events finance charges) Finance (includes Auxiliary Services) Auxiliary Corporate Services Safety and Security and Safety Administration (City Human SettlementsHuman Community Services and Spatialand Planning Solid Waste: Cleansing Waste: Solid Economic, Environment Transport for Cape Town Childhood Development Childhood Manager, Compliance and Social Development and Early AND RISK MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, Figure 5.2: Expenditure on municipal services per every R1 000 of property rates

The City of Cape Town’s municipal budget rests on the building blocks of affordability, sustainability and credibility. Social package The social package assists poor households by providing them with the following: 2012/13 • 6 kℓ of water per month per household, free of charge and use less than 450 kWh per month, and with property

• 4,5 kℓ of water, including sewerage charges, for all values of R300 000 or less REVIEWPERFORMANCE properties valued at R300 000 or less, free of charge • Waste removal rebates between 0% and 100% for • 4,2 kℓ sanitation per month per household, free of charge consumers whose properties are valued at R400 000 or less • 60 kWh of electricity per month per household, free of • A total of R1,1 million in rates rebates on various charge, for users who have a prepaid electricity meter properties, depending on ownership and usage

The total cost of the social package amounts to R2,5 billion for the 2014/15 financial year.

CONSOLIDATED EXPENDITURE

Utility Services Transport for Cape Town DEVELOPMENT ORGANISATIONAL R16 786 m – 48% of total budget R3 837 m – 11% of total budget • Electricity network infrastructure – growth and • Repairs and maintenance of roads, stormwater refurbishment (R640 m) infrastructure, public transport facilities, etc. (R837 m) • New Bellville refuse transfer station (R210 m) • Integrated rapid transit system roll-out (R508 m) • Electrification – including backyarders (R152 m) • MyCiTi bus fleet acquisition (R302 m) • Sewer and water network replacement and upgrade • Contracted services for MyCiTi vehicle operating (R106 m) contracts, EPWP and other (R372 m) • Public transport infrastructure/facilities (R195 m) • Janitorial services – sanitation to informal areas (R24 m), ECONOMIC SUSTAINABILITY EPWP (R36 m) • Roads and stormwater rehabilitation/reconstruction AND PERFORMANCE FINANCIAL • Replacement of plant and vehicles (R84 m) (R170 m) • Street lighting with an emphasis on poorer areas (R49 m) • Non-motorised transport facilities – footways and • Mayor’s special job creation programme (EPWP) (R35 m) cycle-ways (R100 m) • Enhanced service delivery – operations (R25 m) • Security at public transport facilities, depots, etc. (R29 m) • Water pressure management (R20 m) • Strandfontein Road reconstruction/widening (R15 m) • Mayoral redress in poverty hot spots (R20 m) STATEMENTS

• Drop-off facilities at the Faure and Swartklip landfill sites FINANCIAL ANNUAL (R17 m) • Apprenticeship training programme (R8 m) • Awareness campaigns – water demand management and blocked sewers APPENDICES

INTEGRATED Annual Report | 2013/14 101 Human Settlements Safety and Security R2 753 m – 8% of total budget R1 712 m – 5% of total budget • CRU upgrade project (R175,3 m) • Expanding staff and capital resources in the policing • PHP (R170 m) departments and emergency services (R20,9 m) • Hostels transformation programme – Langa (R105,5 m) • Improved safety and security through partnerships with communities, the private sector, other departments and • Informal settlements: Urbanisation/informal settlement spheres of government (R17,1 m) projects (R296,8 m) • Establishment of an integrated emergency contact • Social housing projects (R79,25 m) centre (R30,3 m) • Integrated human settlements: Pelican Park housing • Replacement and new vehicles (R14,5 m) project (R87 m) • Mayor’s special job creation programme and EPWP (R11 m) • Private-sector partnership: Fisantekraal housing project (R63,2 m) for 2014/15 • Expansion of CCTV roll-out in mayoral urban regeneration areas (Bellville and Athlone) and replacement of security • Land acquisition for human settlements developments cameras (R7,6 m) (R14 m) • Completion of phase 2 of the Atlantis driver’s testing • Mayor’s special job creation programme and EPWP (R12 m) station (R1,5 m) • Replacement and acquisitions of radios and communication Corporate Services equipment (R1,9 m) R2 021 m – 6% of total budget • Expanding the broadband fibre-optic network (R139 m) City Health • Civic Centre upgrades (R40 m) R930 m – 3% of total budget • Training programmes (R39 m) • Mayor’s special job creation programme and EPWP (R6 m) • Mayor’s special job creation programme and EPWP (R4 m) • Construction for the upgrade and extension of ARV and TB services at Tafelsig (R3,4 m) and Mzamomhle clinics Community Services (R3,7 m) R1 711 m – 5% of total budget • New Environmental Health offices in Khayelitsha (R2,4 m) • New regional library in Kuyasa, Khayelitsha (R52 m) • Upgrade and extensions to St Vincent Clinic (R424 845) • Mayor’s special job creation programme and EPWP (R22 m) • Director’s special projects and community gardens (R17 m) • Smart Parks (R11,9 m)

102 INTEGRATED Annual Report | 2013/14 Other

R5 116 m – 15% of total budget • Mayor’s special job creation programme and EPWP (R53 m) • Strand precinct upgrade (R10 m) • Broadband infrastructure and connectivity (R150 m) • Integrated planning and operating system (R9,9 m) 2014 • Transfers and grants (R125 m) • Provision of lifts for empty shafts: Cape Town Stadium • Basement parking and access – CTICC (R89,5 m) (R7,9 m) WORLD DESIGN CAPITAL DESIGN WORLD • Ward allocations – operating and capital (R77,7 m) • Quality public spaces – citywide (R7 m) • Spatial transformation/integrated zones (R57 m) • Replacement of Finance warehouse equipment (R6,5 m) • E-procurement system (R4 m) • World Design Capital (R23,5 m) • Public spaces informal settlements upgrade (R2,6 m) • Mayoral urban regeneration programme (R29 m) • Pampoenkraal heritage site (R2,4 m) • Social development programmes – ECD, substance abuse, vulnerable groups, poverty alleviation, support to • Imizamo Yethu sporting precinct (R2,3 m)

street people (R13 m) • Upgrade of Grand Parade (R1 m) and Lookout Hill (R1 m) OVERVIEW OF

• Construction of ECD centres (R12 m) • Upgrade of Athlone Stadium (R1 m) THE CITY OF CAPE TOWN • Baboon management (R10 m) • Elsies River public access centre (R2,3 m) AND RISK MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, 2012/13 PERFORMANCE REVIEWPERFORMANCE ORGANISATIONAL DEVELOPMENT ORGANISATIONAL ECONOMIC SUSTAINABILITY FINANCIAL PERFORMANCE AND AND PERFORMANCE FINANCIAL STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL APPENDICES

INTEGRATED Annual Report | 2013/14 103

Report of theMunicipalPublicReport of Accounts Committee (MPAC) Abbreviations of Glossary Appendices 2013/14 policy and statements Financial Officer Financial Chief the by Report General information the Audit Committee of Report onconsolidatedfinancialstatements, andperformanceinformation the Auditor-General of ManagementCommentsReport andCorrective Action the Auditor-General of onconsolidatedfinancialstatements,Report andperformanceinformation statements financial annual consolidated the of Approval mandate entity’s Reporting ANNUAL FINANCIAL STATEMENTS F: Appropriation statement(Reconciliation: Budgetandin-year performance) grants andsubsidies E: Disclosure of financialperformance D: Segmentalstatementof bankaccounts C: Disclosure of property,B: Analysis of plantandequipmentotherassets external borrowings A: Scheduleof Notes to theconsolidatedfinancialstatementsforyear ended30 June 2014 Accounting policies Town Cape of –City amounts actual and budget of comparison of Statement budgetandactualamounts–economicentity comparisonof Statement of Cash flow statement changesinnetassets Statement of financialperformance Statement of financialposition Statement of 204 206 108 106 106 207 140 199 122 129 125 123 198 193 127 196 121 194 124 110 116 114 111

The reporting entity (hereinafter “the Entity”) is a high-capacity, category A, local authority established in terms of section 151 of the Constitution of the Republic of South Africa (Act 108 of 1996). The principal activities of the Entity are to: • provide democratic and accountable government to the local communities; • ensure sustainable service delivery to communities; • promote the involvement of communities and community organisations in the matters of local government. The Entity’s operations are governed by the Local Government: Municipal Finance Management Act (MFMA) (Act 56 of 2003), Municipal Structures Act (Act 117 of 1998), Municipal Systems Act (Act 32 of 2000) and various other acts and regulations.

Approval of the consolidated annual Financial statements

Approval of the consolidated annual financial statements I am responsible for the preparation of these consolidated annual financial statements for the year ended 30 June 2014, as set out on pages 121 to 205 in terms of section 126(1) of the Municipal Finance Management Act, and have accordingly signed the statements on behalf of the City. I certify that the salaries, allowances and benefits of councillors as disclosed in note 30 to these annual financial statements are within the upper limits of the framework envisaged in section 219 of the Constitution of the Republic of South Africa, read with the Remuneration of Public Office Bearers Act (Act 20 of 1998) and the Minister of Provincial and Local Government’s determination in accordance with the Act.

Achmat Ebrahim City Manager 30 September 2014

106 INTEGRATED Annual Report | 2013/14

REPORT OF THE AUDITOR-GENERAL to the Western Cape Provincial Parliament and the council on the City of Cape Town

REPORT ON THE CONSOLIDATED AND SEPARATE FINANCIAL STATEMENTS Introduction 1. I have audited the consolidated and separate financial statements of the City of Cape Town and its entities set out on pages 121 to 192, which comprise the consolidated and separate statement of financial position as at 30 June 2014, the consolidated and separate statement of financial performance, statement of changes in net assets, the cash flow statement and the statement of comparison of budget and actual information for the year then ended, as well as the notes, comprising a summary of significant accounting policies and other explanatory information. Accounting officer’s responsibility for the consolidated and separate financial statements 2. The accounting officer is responsible for the preparation and fair presentation of these consolidated and separate financial statements in accordance with South African Standards of Generally Recognised Accounting Practice (SA Standards of GRAP), and the requirements of the Municipal Finance Management Act of South Africa, 2003 (Act No. 56 of 2003) (MFMA) and the Division of Revenue Act of South Africa, 2013 (Act No. 2 of 2013) (DoRA), and for such internal control as the accounting officer determines is necessary to enable the preparation of consolidated and separate financial statements that are free from material misstatement, whether due to fraud or error. Auditor-general’s responsibility 3. My responsibility is to express an opinion on these consolidated and separate financial statements based on my audit. I conducted my audit in accordance with the Public Audit Act of South Africa, 2004 (Act No. 25 of 2004) (PAA), the general notice issued in terms thereof and International Standards on Auditing. Those standards require that I comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the consolidated and separate financial statements are free from material misstatement. 4. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated and separate financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the consolidated and separate financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated and separate financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated and separate financial statements. 5. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinion. Opinion 6. In my opinion, the consolidated and separate financial statements present fairly, in all material respects, the financial position of the City of Cape Town and its entities as at 30 June 2014 and their financial performance and cash flows for the year then ended, in accordance with SA Standards of GRAP and the requirements of the MFMA and DoRA. Emphasis of matters 7. I draw attention to the matters below. My opinion is not modified in respect of these matters. Material impairments/losses 8. As disclosed in note 8 to the consolidated financial statements, receivables have been significantly impaired. The impairment allowance amounts to R4,2 billion (50% of the gross balance of receivables) of which R2,9 billion (33% of the gross balance of receivables) relates to service debtors. 9. As disclosed in note 9 to the consolidated financial statements, other receivables have also been significantly impaired. The impairment allowance amounts to R895,3 million (68% of the gross balance of other receivables). 10. As disclosed in note 8 to the consolidated financial statements, material losses to the amount of R574,8 million were incurred as a result of a write-off of irrecoverable trade debtors. Material underspending of the budget 11. As disclosed in the consolidated statement of comparison of budget and actual amounts, the municipality has materially underspent the capital budget to the amount of R1,1 billion (20%). Additional matters 12. I draw attention to the matters below. My opinion is not modified in respect of these matters. Unaudited supplementary schedules 13. The supplementary information set out on pages 193 to 205 does not form part of the consolidated and separate financial statements and is presented as additional information. I have not audited these schedules and, accordingly, I do not express an opinion thereon. Unaudited disclosure notes 14. In terms of section 125(2)(e) of the MFMA, the municipality is required to disclose particulars of non-compliance with this legislation. This disclosure requirement did not from part of the audit of the consolidated and separate financial statements and, accordingly, I do not express an opinion thereon.

REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS 15. In accordance with the PAA and the general notice issued in terms thereof, I report the following findings on the reported performance information against predetermined objectives for selected development objectives presented in the annual performance report, non-compliance with legislation as well as internal control. The objective of my tests was to identify reportable findings as described under each subheading but not to gather evidence to express assurance on these matters. Accordingly, I do not express an opinion or conclusion on these matters.

108 INTEGRATED Annual Report | 2013/14 18. 17. 17 Cape Town 26. 25. Investigations OTHER REPORTS report performance annual statements, financial separate and consolidated ofto the my audit relevant control internal considered 24. Internal control legislation applicable with complied had entity municipal its and municipality the that evidence to obtain procedures erformed 23. Compliance with legislation 22. Achievement of planned targets 21. matter Additional for the information performance reported of the reliability and usefulness the about evidence to obtain procedures erformed 16. Predetermined objectives ( P RE 20. 19. continued) r

D ovincial ec PO • • as is follows: cases the in movement The review. under year financial of the end the I I Convention Centre Company S (FE department Town’s integrity and ethics forensic, by the in a Town.recommendation of Cape City resulted by the This by the conducted was investigation an period, prior inthe reported As I the of in terms issued notice general the in out set as in legislation, key matters specific with compliance year. for the 216 targets pages on of planned to 221achievement the report on for information performance annual to the Refer O legislation. with compliance and matters. related other and management financial matters, financial regarding • • • Municipal entity (Cape Town International Convention Centre) • Municipality development objectives. development I I by the required as relevant, and bound time objectives. N I • • • by the board of the CT of the board by the objectives, development Although 2014: June 30 ended year for the entity municipal its and municipality of the report performance annual inthe presented objectives development selected following I e p d a e p

o at ne h ne ember 2014ember valuated the usefulness of the reported performance information to determine whether it was presented in accordance with the the with inaccordance presented was it whether to determine information performance reported of the usefulness the valuated valuated the reported performance information against the overall criteria of usefulness and reliability. and of usefulness criteria overall the against information performance reported the valuated ssessed the reliability of the reported performance information to determine whether it was valid, accurate and complete. accurateand valid, was it whether to determine information performance reported of the reliability the ssessed O Tw Ke Ke 1:222) area (page Events Key performance id not raise any material findings on the usefulness and reliability of the reported performance information for the selected selected the for information performance reported the of reliability and usefulness the on findings any material raise not id ional Treasury’s annual reporting principles and whether the reported performance was consistent with the planned development development planned the with consistent was performance reported the whether and principles Treasury’s reporting annual ional investigated by the FE by the investigated ne h ne O (pages 218 to 219) O O 216 (page to 217)development y performance area 6: Governance (page 222) (page 6: area Governance y performance 222) (page excellence service and 3: area centricity Customer y performance o hundred and thirty-five (235) new cases relating to alleged fraud, corruption, theft and the misuse of public funds were were funds public of misuse the and theft fraud, corruption, alleged to relating cases (235) new thirty-five and o hundred RT RT undred and seventy-three (173) (2012-13: seventy-three and cases undred open 170) FE inthe Town of Cape City to appeared the relevant bj bj bj bjective 1.2: bjective ective 3.4: ective undred and eighty (180) cases were concluded during the year, the (118) during and (62) year (180) current of which to concluded relate the were eighty and cases undred years. to prior ective 3.3: Assess the possible sale or transfer of rental stock to identified beneficiaries, using established criteria criteria established using beneficiaries, to identified stock of rental transfer or sale possible the 3.3: Assess ective 218 (pages them to 219) need who to those access for increased settlements human 3.2: Ensure innovative ective I r I f aised no material findings on the usefulness and reliability of the reported performance information for the selected selected the for information performance reported the of reliability and usefulness the on findings material no aised O urther performed tests to determine whether indicators and targets were well defined, verifiable, specific, measurable, measurable, specific, verifiable, defined, well were targets and indicators whether to determine tests performed urther P F T arliament andthecouncilonCityofCapeT P P ro ro vide for the needs of informal settlements and backyard residences through improved services (pages 218 (pages -21 services improved through residences backyard and settlements of informal needs for the vide H I vide and maintain economic and social infrastructure to ensure infrastructure-led economic growth and and growth economic to infrastructure-led ensure infrastructure social and economic maintain and vide CC w I d E A ID raw attention to the following matter: following to the raw attention d ere finalised on finalised ere 21 uring the year. the uring O C Lt I UDI d id not identify any significant deficiencies in internal control. in internal deficiencies any significant identify not id d’s (CT T O I CC N at ) expansion project. The investigation by the City’s FE City’s by the investigation The project. ) expansion R-GE O ional Treasury’s Framework for managing programme performance information. performance programme for managing Treasury’s Framework ional ct ober 2014.ober ID ) int N o supply chain management procedures of the Cape Town Cape of the procedures management chain o supply ERAL INTEGRATED A INTEGRATED O O ffi totheWester PP ce of the ce of the t hat an investigation be instituted by the City of Cape of Cape City by the instituted be investigation hat an nn I d P id not identify any instances of material non- of material any instances identify not id u ub a l R lic lic e P po ro tector ( tector rt |2 013/14 OP ID a n Cape n Cape P nd the reviews performed performed reviews the nd ) int P AA o the purchase of land of land purchase o the . ID I own nt re ernational ernational gister at at gister 9) 109

110 INTEGRATED Annual Report | 2013/14 Th Mr D JG Ms MR Ms ZM Mr Name ofMember City. of the Committee Risk of the member a is also Chairperson The meetings. atCommittee Audit is in and attendance is invited Auditor-General The held. also were The Committee presents its report for the financial year ended 30 June June 30 2014. ended financial for year the report its presents Committee The by Council. approved and updated • • • • has: Committee The STATEMENTS EVALUATION AND FINANCIAL REVIEW ANNUAL THE OF workplan. Committee mandate.revised The will, therefore, its to ToR theAudit financial changes ofyear, the influence end substantial some with by Council the approved was and after process to arevision of reference terms subjected Committee was Audit (ToR) The to Council. submitted have been reports written quarters to Strategic the presented Mayco was third fourth for and and the activities Committee Audit the on reporting Quarterly responsibilities. its out in carrying that assists annual an workplan has compiled Committee Audit The requirements. legislative relevant including of reference, terms its from arising responsibilities its with complied far as thathas, it possible, as reports Committee The RESPONSIBILITY COMMITTEE AUDIT O below. listed members of the consists and Committee’s members, The of reference terms aminimum requires of four independent ATTENDANCE AND MEMBERS COMMITTEE AUDIT Act (MFMA), Act Management Committee, of in S166 terms independent an as Finance established Municipal of the has been Committee Audit The TOWN CAPE OF CITY THE OF COUNCIL AND MAYORAL EXECUTIVE TO THE COMMITTEE COMMITTEE AUDIT THE OF REPORT f RE statements of the City of Town, 2014, Cape City of the June 30 ended year for the statements findings. no with financial the on Entity’s opinion audit unqualified an has issued Auditor-General that the pleased is extremely Committee The • sJd ute B.Compt 01/04/2012to31/03/2015 30/03/2009to30/03/2012 Ms JudyGunther CA(SA),MastersinBusinessLeadership Ms MariaanRoos Mr ZaidManjra Name D Mrs FawzaEssa

o r SFi th r SFisher e tenure and qualifications of the members areas follows: members the of e tenure qualifications and s F Essa (Resigned: 18 February 2014) 18 (Resigned: February s FEssa Re Rev Re Re in the included Re r er meetings with the City Manager, City the with meetings er PO

viewed changes in Accounting changes viewed management; and Auditor-General the with Auditor-General of the opinion audit and report the discussed and viewed be to management, and the Auditor-General with the of City statements annual the financial discussed and viewed viewed the City’s compliance with legal and regulatory provisions. regulatory and legal City’s the compliancewith viewed t sher iewed the Auditor-General’siewed and management’s management thereto; letters responses unther h D anjra oos (Reappointed: effective 1 February 2014) 1February effective (Reappointed: oos ur e

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ing the year under review, four Audit Committee meetings and two special meetings were held. were meetings special two review, and under year ing the meetings four Committee Audit year

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D onours, MastersinCost UDI 56 of 2003. The Committee is governed by of a formal terms reference, is isregularly governed Committee which of56 2003. The ip CoLaw P U ol e CT), M.Med(Community 2014 icies and and icies

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MM I A) , Senior Management, Mayoral Committee (Mayco) Committee Mayoral Mayor the and Management, , Senior I TTEE INTEGRATED A INTEGRATED 10/01t 10/0401/02/2014to31/01/2017 01/02/2011 to31/01/2014 Tenure period(2) Tenure period(1) 01/11/2012 to31/10/2015 01/11/2012 to31/10/2015 01/11/2012 to18/02/2014 nn u a l R e po rt Number ofmeetingsattended |2 013/14 3 4 7 7 8 111

The Committee concurs and accepts the Auditor-General of South Africa’s opinion regarding the annual financial statements, and proposes that the audited annual financial statements be accepted and read together with the Report of the Auditor- General of South Africa. The financial statements are prepared in accordance with the South African Standards of Generally Recognised Accounting Practice, and in the manner required by the Local Government: Municipal Finance Management Act of South Africa, 2003 (Act No.56 of 2003) (MFMA) and the Division of Revenue Act of South Africa, 2009 (Act No.12 of 2009) (DORA). The Committee draws attention to the ‘emphasis of matter’, predetermined objectives, and other paragraphs contained in the Auditor-General’s report, noting that these do not affect the opinion in any way.

EFFICIENCY AND EFFECTIVENESS OF INTERNAL CONTROL The Committee has considered the work performed by IA on a quarterly basis and has reviewed the IA Annual Report on Internal Controls for the year ended 30 June 2014. An IA opinion of ‘Some Improvement Needed’ was expressed on Internal Controls, based on the results of the various audit engagements completed during the year under review. This opinion is an improvement on the preceding years. The Committee of Sponsoring Organisations of the Treadway Commission (COSO) Internal Control Framework was used as the reporting framework against which the audit results were applied to form an opinion on each of the COSO components, namely, the control environment, risk assessment, control activities, information and communication and monitoring activities. The Committee was also encouraged by the level of financial controls in place in the City. The Committee wishes to draw attention to the following areas flowing from Committee activities during the year and the IA Annual Report on Internal Controls: Information Systems The Committee noted the significant improvement in the controls in IT&S, with Internal Audit (IA) having performed a large number of Continuous Audits (CAs) during the course of the year. IA performed audit engagements related to: • Active Directory; • IT Systems Business Continuity Review; • SAP Basis Review; and • ICT Governance (COBIT) Review.

INTERNAL AUDIT EFFECTIVENESS The IA activities are completed by an in-house department operating in terms of an IA Charter. There appears to have been no compromise of the independence or objectivity of the IA function during the year under review. However, with the change of the reporting lines of IA and the changes in the Audit Committee ToR, the Committee had raised its concerns regarding the potential impairment of the independence of IA. The Committee was given assurances of IA’s independence, and will continue to closely monitor the impact of the revised reporting lines of IA, to ensure that its independence is not being impaired. The Committee reviews audit quality throughout the year with an emphasis on audit governance, methodology, independence, scope of work and outputs. The Committee believes that the IA function has been effective in carrying out its function in the City, having achieved or exceeded most of their performance targets. The Chief Audit Executive position has been vacant since April 2014. The Committee has raised its concern regarding the length of time it has taken to fill this key leadership position.

PERFORMANCE MANAGEMENT The Audit Committee also acts as the Performance Audit Committee for the City. The Audit Committee is pleased to note that there were no material findings raised by the Auditor-General on the usefulness and reliability of the reported performance information for the selected development objectives. The Committee had reviewed and given consideration to the quarterly reports and quarterly performance results as reported by management. The IA quarterly reports on selected City Performance Management System Information were reviewed and the recommendations for continuous improvement are supported in an effort to ensure compliance, functionality and effectiveness of the system, as prescribed by the legislative framework. The Committee recommends that management continue to address other deficiencies in the performance management process as highlighted by IA, the Auditor-General and biannual Audit Committee reports to Council. Subsequent to the year-end, the Council has appointed a separate Performance Audit Committee.

RISK MANAGEMENT The City continues to show good progress in embedding risk management processes in its operations and enhancing the understanding of risk management in its strategy.

112 INTEGRATED Annual Report | 2013/14 9 December2014 Chairperson oftheAuditCommittee Z IManjra to Municipal the report Audit Committee An report. financial year, duringthe City by the made thisin outlined progress areas the allthe in with pleased is very Committee The CONCLUSION City’smeetings. the Committee Audit Entity, forMunicipal CT the role with advisory Town Cape The MUNICIPAL ENTITY addressed. are risks to ensure framework that all significant City’s of the Combined Assurance development the continues to Committee review The frameworks. to legislative ensure compliancewith are welcomed and City the within are evolving initiatives These reporting. King of the principles the has adopted City The GOVERNANCE processes. City’s of intervention the risk understanding Committee’s Audit Committee,facilitating the Risk of the thereby a member as serves Chairperson Audit Committee The Ci to e and City,Africa of the of toSouth management the Auditor-General the appreciation its to express wishes Committee The culture. to and grow acitizen-centric and build delivery, service for sustainable journey the on residents its facing and City the challenges social and to economic the consideration due giving strategies, and vision in its City the fullysupports Committee The process. oversight annual report ty-wide governance interventions required such as the communication and monitoring of the Ethics Ethics of the monitoring and communication the such as required interventions governance ty-wide nable the Committee to perform its function. its to Committee perform the nable I nt ernational Conventionernational Centre (CT P ub III I report on corporate governance. The Committee continues to monitor key continuesto Committee monitor governance. The corporate on report CC lic Accounts Committee (M Committee lic Accounts I CC Audit Committee meeting minutes and annual report being reviewed at reviewed being annualminutes and report meeting Audit Committee ) is the City’s Municipal Entity. The Committee plays an oversight and and oversight an plays Entity. City’s Committee ) is the Municipal The INTEGRATED A INTEGRATED P AC nn u ) was also submitted to M the submitted also ) was a l R e po rt |2 013/14 O ffi ce compliance and P AC for the for the I A 113

Speaker Alderman Smit, JD

Chief Whip Alderman Serritslev, AM

Executive Mayor Executive Deputy Mayor Alderman De Lille, P Alderman Neilson, ID

Members of the Mayoral Committee • Alderman Neilson, ID Finance • Alderman Limberg, X Corporate Services • Alderman Smith, JP Safety and Security Services • Alderman Walker, B Community Services and Special Projects • Councillor Bloor, G Tourism, Events and Marketing • Councillor Herron, BN Transport for Cape Town* • Councillor Little, S Social Development and Early Childhood Development • Councillor Mamkeli, S Human Settlements • Councillor Sonnenberg, EJ utility Services • Councillor Van Minnen, B Health • Councillor Van der Merwe, J Economic, Environmental and Spatial Planning *Previously known as Transport, Roads and Stormwater.

Members of the Audit Committee • Manjra, Z Chairperson • Essa, F Member (resigned 18/02/2014) • Fisher, S Member • Gunther, J Member • Moloko, K Member (resigned 27/07/2013) • Roos, M Member

Auditors Bankers The Auditor-General of South Africa ABSA Capital Business Connexion Building Private Bag X1 1st floor PO Box 4110 Ring Road, Century Boulevard Chempet 163 Uys Krige Street Tyger Valley Century City 7442 Plattekloof 7536 7441 7500 Registered office 12 Hertzog Boulevard PO Box 655 Cape Town Cape Town 8001 8000

City Manager Chief Financial Officer Ebrahim, A Jacoby, K

114 INTEGRATED Annual Report | 2013/14 Gr Gabuza, A Gabriel, Gabier, A Francke, Fourie, G Fourie, A Esau, CJ Elese, Ehrenr East, D D D D D D D Cr Cottee, Clayton, CC Claasen, C Christians, Chapple, Cerfontein, C Cavanagh, G Burger Brynard, CA Bryant, Brunette, E Britz, MT Brenner Bredenhand, JC Brady, WE Bloor Bew, CB Bent, Beneke, R Bazier, R Basson, JA Badela, August, S Ar Arendse, R Arendse, MT Anstey Andrews, E Amira, Akim, WJ Adams, Y Adams, A Abrahams, MM Abrahams, FL Abrahams, A Abrahams, A Councillor/Alderman Town of Cape City of the members Council GE yantyi, udley ube, AJ iamond, S e Lille, avids, MM ’Alton, ous, AC endse, SW een, AM , GM P N N D A eich, AJ , J , E , D L , D D D D P P HH V HI P D ERAL D W E J G PH N J PV D N P P J P V N IN F O RMAT Mamkeli, S Mamba, KC Makeleni, LC Makeleni, K Makasi, Makanda, M Madikane, BC Mack, CJ Maci, L Mabandla, M Little, SA Limberg, XT Liell-Cock, S Leputhing, C Le Roux,B Lategan, K Landingwe, Krynauw Kopman, Komeni, AL Kleinsmith, ME Kleinschmidt, MR Khatshwa, Kempthorne, ML Kempthorne, Kannenberg, ACK Justus, CR Jordaan, L Jordaan, C Jef Jansen, E Jansen van as a esug Mxolose,WS Janse vanRensburg,C Jaftha, W Jaf Jacobs, J Jacobs, BM I I I H H H H H H H H H H H H H Gympies, SC Gwangxu, X Griesel, AJ versen, saacs, saacs, L oosain, J oor onono, TT eynes, euvel, JA err endricks, MGE ebe, LA aywood, M assiem, W askin, GC ansen, B adebe, B feries, fer, L on, B n, RM V I I N R P , J I N D C N K D H ION D F V P N N M uuren, M N J H

(continued) I P P P P P P P P P O O N N N N N N N N N N N N N N N N N N N Mzalisi, M Msindwana, ME Mpondwana, M Mphila, Moshani, Moses, AC Morkel, K Mofoko, Mngxunyeni, Mkutswana, MA Middleton, J Mhlanga, C Mfusi, McCarthy, J Mbonde, ME Mbandezi, S Maxiti, Maxheke, JJ Matha, MS Matanzima, Martlow Marman, March, GW Mangali, T upa, T ringle, SB r ietersen, M ienaar hilander etersen, MJ eter akela-Mapasa, XB yakatya, tsodo, A totoviyane, C qulwana, M qavashe, ML otana, E onkeyizana, S kunzana, FM kohla, L ikelo, M ieuwoudt, MJ guzo, M gqu, gqose, gqame, Y eilson, dzulwana, dongeni, XA damase, T liver ’Connell, RA etorius, INTEGRATED A INTEGRATED , XG , MJ P VN , S P M D , J ID N , S N H PI N I N N S J M A A C P H N V P M nn u a l R e po rt Zondani, LG Yozi, SK Yalezo, S W Weavers, M W Walker, B V V V V V V V V V V V V V V V U Twigg, GG Toko, MS T Thuynsma, J Thompson, TB Thomas, G Thomas, CR Taylor, MJ Sotashe, X Sopaqa, MM Sono, Sonnenberg, E Smith, J Smit, J Slabbert, J Sitonga, MC Simons, RS Siljeur, GR Sikhakhane, Serritslev Scheepers, CJ Sakathi, T Rossouw Raymond, F Rau, R Rass, B Qually, Qoba, ZL P |2 imm, G ur enter, J elem, M an Wyk,C an Reenen,B an Minnen,BM an derWalt, ML an derRoss, an derRheede,A an derMerwe,JF an derMerwe,CG an derMerwe,B an uba, ST isser, J iljoen, R ys, T atkyns, BRW illiams, A chase, F 013/14 D A alen, B NP D D D , AM , SJ L D H H H J N S L P E H 115

FINANCIAL REVIEW This review sets out highlights of the Entity’s financial performance for the past year. Full details appear in the annual financial statements.

OVERVIEW OF ENTITY RESULTS The Entity has continued to perform well across most of its business operations in line with its business plan. This was particularly notable in view of the Entity’s successful water and electricity conservation efforts over the last few years. The Entity’s economic resilience has been managed through growth strategies and complemented by cost-containment initiatives to take strides in delivering on its mandate to govern and provide basic infrastructure and services across the spectrum of its communities. The overall summarised operating results for the Entity in comparison with the approved budget are shown below. The statement of financial performance reflects a summary of income and expenditure, while the segmental operating results per service are shown in Appendix D to the consolidated annual financial statements.

2014 2013 2013 – 2014 Actual Budget Actual Growth R’000 R’000 R’000 % Revenue Property rates 5 542 203 5 427 388 5 074 606 9,21 Service charges 14 063 470 14 414 988 13 242 118 6,20 Government grants and subsidies – operating 2 389 432 2 585 433 1 979 795 20,69 Fuel levy 1 895 992 1 895 992 1 706 690 11,09 Other 2 340 581 1 557 740 2 060 719 13,58 26 231 678 25 881 541 24 063 928 9,01 Expenses Employee benefits 8 691 018 9 510 134 7 490 464 16,03 Impairment costs 1 327 820 901 357 934 057 42,16 Net depreciation and amortisation expenses – see note 32 946 068 1 123 768 1 009 677 (6,30) Finance costs 808 782 864 010 730 283 10,75 Bulk purchases 6 591 232 6 607 911 6 391 186 3,13 Contract services 3 405 865 3 447 109 2 911 396 16,98 Other 4 077 457 4 102 415 3 941 121 3,30 25 848 242 26 556 704 23 414 184 10,40

Net operating surplus 383 436 (675 163) 649 744 Grants and subsidies – capital 2 138 816 2 972 688 3 457 573 Grants-funded assets financed from reserve (828 615) (840 606) (632 276) Surplus 1 693 637 1 456 919 3 475 041 Appropriation and taxation (1 265 897) (2 066 091) (2 833 982) Net result 427 740 (609 172) 641 059

Over the past year, consolidated revenues increased by 9,01% to R26,23 billion while consolidated operating expenses increased by 10,40% to R25,85 billion. The Entity reported a net operating surplus of R383,44 million (2013: R649,74 million) against a budgeted deficit of R675,16 million.

116 INTEGRATED Annual Report | 2013/14 • Further details are contained in notes 29 to 36 to the consolidated annual financial statements. annual 29 in notes financial to to consolidated are contained 36 the details Further Entity. for the remain akey increases priority of containment cost control and management review. proactive foryear under the The of expenditure main categories the graph indicates following The expenditure Operating statements. annual in financial note 22 to consolidated are contained the charges of service details Further • • • • were: activities and programmes Entity’s the that supported revenuestreams major The revenue Operating ( BYTHECHIEFFINANCIALOFFICER REPORT continued)

oth go fue wastemanagement(solidwaste); – wastewatermanagement(sewerageandsanitation); – watersales; – electricitysales; – se pr 13% – – – – operty rates; operty rvice charges which are made up of: up are made which charges rvice vernment grants andsubsidies; and vernment grants l levy; er. 7% 50% 20% 25% 8% 19% 7% 32% 16% 3% Other Fuel levy Service charges grantsandsubsidies Government Property rates Finance costs Employee benefits Other Fuel levy Service charges grantsandsubsidies Government Property rates Other Contracted services Bulk purchases Depreciation INTEGRATED A INTEGRATED nn u a l R e po rt 21 14 13 12 21 14 13 12 |2 20 778 440 21 628 683 013/14 R’000 R’000 23 411 184 24 063 928 10,4% 9,01% 25 848 242 26 231 678 117

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 REPORT BY THE CHIEF FINANCIAL OFFICER (continued) OPERATING RESULTS PER SERVICE The following is a summary of the operating results of the various services.

Rates and general services 2014 2013 Actual Budget Variance Actual R’000 R’000 R’000 R’000 Revenue 14 353 870 13 662 222 (691 648) 12 869 434 Expenditure (15 596 255) (15 569 697) 26 558 (12 923 414) Operating deficit for the year (1 242 385) (1 907 475) (665 090) (53 980) Grants and subsidies – capital 1 687 770 2 411 616 723 846 3 033 156 Results for the year – see Appendix D 445 385 504 141 58 756 2 979 176 Appropriations (1 096 928) (1 553 168) (456 240) (2 726 573) Net results for the year (651 543) (1 049 027) (397 484) 252 603

Utility services 2014 2013 Actual Budget Variance Actual R’000 R’000 R’000 R’000 Revenue 17 746 477 18 026 312 279 835 16 814 609 Expenditure (16 983 432) (17 638 163) (654 731) (16 774 476) Operating surplus for the year 763 045 388 149 (374 896) 40 133 Grants and subsidies – capital 451 046 561 072 110 026 424 417 Result for the year – see Appendix D 1 214 091 949 221 (264 870) 464 550 Appropriations (127 280) (512 923) (385 643) (98 501) Net results for the year 1 086 811 436 298 (650 513) 366 049

Subsidiaries (controlled and municipal entities) 2014 2013 Actual Budget Variance Actual R’000 R’000 R’000 R’000 Revenue 312 580 289 828 (22 752) 276 646 Expenditure (278 419) (286 271) (7 852) (245 331) Results for the year – see Appendix D 34 161 3 557 (30 604) 31 315 Taxation (8 487) – 8 487 (8 908) Transfer from share purchases (33 202) – 33 202 – Net results for the year (7 528) 3 557 11 085 22 407

118 INTEGRATED Annual Report | 2013/14 The outstanding consumer debtors and the provision for impairment as at 30 June 2014 June at 30 as for impairment provision the and below. graphically debtors consumer are represented outstanding The debtors. consumer 49,54% represents which outstanding total of the R4,23 billion, (2013:of R576,93 off written has been million R1 to billion billion). R4,04 from Total increased for impairment provision 2014 June at 30 as debtors consumer (2013: billion R8,54 were Outstanding debt arrear billion). sector R8,22 Indigent DEBTORS CONSUMER Stormwater. and Roads Transport, as known *Previously A. Appendix in shown are assets tofixed finance used loans external regarding details More class. according to asset Bcontains details Appendix while amounts, actual and of budget of comparison statement in the areais included functional per actual) and (budgeted expenditure of capital analysis A complete Property, plant and equipment sources: thefollowing were financed from assets fixed The 2014 June at 30 as commitments Capital to amounted R3,12 (2013: billion R1,77 billion). 80,30% (2013: financial year. a previous for the R5,90 billion This represents 94,10%) spend. capital billion,to compared R4,54 amounted to review financial for under year the plant equipment and property, Entity’s The CAPITAL EXPENDITURE ( BYTHECHIEFFINANCIALOFFICER REPORT Rand value – Billion continued) 1 000 2 000 3 000 26% 18% – 3% Rates and other 12% 2013 Debtors 16% 25% Cape Town Electricity Solid Waste management Water service Cape Town Electricity Human settlement Transport forCapeTown* Rates andgeneral 2014 Debtors ae aiainSolidwaste Sanitation Water INTEGRATED A INTEGRATED 2014 Provision forbaddebts nn u management a l R e po rt 21 14 13 12 |2 4 253 098 013/14 Settlement R’000 Human 5 900 771 (23,0)%

4 544 892 119

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 REPORT BY THE CHIEF FINANCIAL OFFICER (continued) INVESTMENTS, CASH AND BORROWINGS Investments as at 30 June 2014 amounted to R5,68 billion (2013: R3,56 billion), of which R1,63 billion (2013: R900,88 million) was set aside for the repayment of loans. Cash and cash equivalents, which represent cash and deposits with a maturity term of less than three months, decreased by R2,26 billion to R2,65 billion. Interest-bearing debt decreased by R321,18 million for the year ended 30 June 2014. The Entity repaid interest-bearing debt of R346,40 million during the financial year under review. Additional information regarding investments, cash and cash equivalents and loans is provided in notes 5, 10 and 11 as well as Appendix A to the consolidated annual financial statements.

CASH FLOW ANALYSIS The following table shows information regarding the Entity’s consolidated cash flows for the year under review.

2014 2013 R’million R’million Cash from operating activities 4 565 5 554 Cash from investing activities (6 589) (6 384) Cash from financing activities (232) 2 259

Cash flows from operating activities The Entity’s sources of liquidity are cash flows from operating activities and borrowings. Cash flows from operating activities decreased from R5,55 billion to R4,56 billion. The Entity’s working capital requirements have steadily increased over the years and are expected to be funded by cash generated from operations. Cash flows from investing activities Cash flows from investing activities relate to investments in capital expenditure and short-term investments of longer than three months. Cash flows from financing activities The cash flows from financing activities are primarily a function of borrowing activities.I n the 2014 financial year, a loan of R0,09 million was raised and R346,40 million repaid.

CREDIT RATING The Entity’s credit rating by agency, Moody’s Investors Service, remains unchanged for the 2013/14 financial year at Aa3.za, with a negative outlook. The Entity’s credit rating has subsequently been downgraded to A1.za, with a stable outlook, as a result of the downgrading of the sovereign rating.

EXPRESSION OF APPRECIATION I wish to convey my sincere appreciation to the Executive Mayor, the Deputy Executive Mayor, the Mayoral Committee, the Chairperson and members of the Finance Portfolio Committee, the Audit Committee, the Municipal Public Accounts Committee, the City Manager and Executive Management Team for their support and cooperation during the year. A special word of gratitude goes to the accounting staff for their contribution, and to the staff of the Auditor-General for conducting the external audit and for their assistance, support and cooperation during the year. Finally, a further word of thanks to everybody for the hard work, sacrifices and concerted effort throughout the year to enable the Entity to finalise these consolidated annual financial statements within the prescribed period.

Kevin Jacoby Chief Financial Officer

120 INTEGRATED Annual Report | 2013/14 Receivables I Current assets Long-term receivables I I I H P assets Non-current ASSETS as STATEME 1 O Non-current liabilities Non-current LIABILITIES TOTAL NET ASSETS AND LIABILITIES AND ASSETS TOTAL NET Total net assets NET ASSETS Total liabilities Current portionofborrowings Taxation V U P P D liabilities Current D P I N Accumulated surplus Reserves H Borrowings TOTAL ASSETS Cash andcashequivalents Current portionoflong-term receivables nventory nvestments ntangible assets nvestment pr nvestments

r ayables fr r r alue-added tax eritage assets on-contr ousing developmentfund nspent conditionalgrantsandr eposits eferr ther r operty, plantandequipment ovisions ovisions Receivables from exchange transactions Receivables from non-exchange transactions O O Comparative restated: seenote46formoredetails.

ther r ther r at ed taxation eceivables 30Jun eceivables from exchangetransactions eceivables from non-exchange transactions olling interest om exchangetransactions operty e 2014 N T O F eceipts IN A N C I AL Note 1 3956 1 9 3835 418166 368325 419496 369536 11 7 7 2 6 9 7 2 69491 79021 69491 1817235 79021 1078550 17 1819924 1081799 4552513 14 5783962 4552513 5783962 12 1 2497 144 658 1793464 20 159 376 1751497 21896756 234947 20279 133 1793464 21 22 000972 1751497 20 19 18 4517030 4763375 4546094 4793980 4697 15 6936236 2201 13 6666139 6951845 37 6680623 4730196 11 2266559 4 907440 2652774 10 6 9 6 8856 14578 858556 1495768 858556 1495768 16 7 43834 41093 43969 4172233 4309649 4170933 4308354 8 5 4 2 0 1 1165 0 1 101665 104312 191945 101665 190849 104312 191945 6 190849 3 3 5 1 79265 3 3 5 27800770 30538858 27992605 30750411 1 2 8 3419 1 0 290496 417304 304159 427783 9 5 960 056 960 20546 19650 20546 19650 6 PO 34 840 463 29 186 892 34 817 678 29 033 825 825 033 29 817 34 678 892 186 29 463 840 34 20 685 446 19 556 823 20 605 357 19 477 444 19 477 444 357 605 20 19 823 556 446 685 20 24 455 835 22 721 611 24 116 672 22 457 196 196 457 22 116 24 672 721 611 22 835 455 24 12 466 786 11 509 055 12 450 101 11 488 749 11 488 101 12 450 11 055 509 786 12 466 10 300 818 13 091 542 9 904 351 12 900 815 12 900 351 9904 13 542 091 818 10 300 45 141 281 42 278 434 44 722 029 41 934 640 41 640 934 029 722 44 278434 42 141 45 281 45 141 281 42 278 434 44 722 029 41 934 640 41 640 934 029 722 44 278434 42 141 45 281 8 218 660 8 047 768 8 155 256 7 988 695 695 7988 8155 256 768 8047 8218 660 30623 3 5 4 4 173425 3245041 134657 3056273 26196 34074 26196 3430794 2621906 3430794 2621906 30426 29381 30426 2993801 3064236 2993801 3064236 12418 11712 12543 1178432 1245413 1177132 1244118 S 7 5 2760 6 8 256550 269283 257670 270351 2 0 7669 2 0 756609 729507 756609 729507 6 1 5436 6 1 504356 468419 504356 468419 308217 370217 333288 398525 2 0 1935 1 2 135652 118725 149315 129204 9 7 1484 9 7 154844 298579 154844 298579 E I INTEGRATED A INTEGRATED 1 941 1 9411 9111 9411 9111 T conomic R’000 ION 2014 31

entity nn Restated u a 919 l R R’000 2013 e po 1 rt

|2 013/14 M R’000 unicip 2014 C ape – – – T ality own Restated

of R’000 2013 – – – 1

121

Municipality of Economic entity Cape Town Restated1 Restated1 2014 2013 2014 2013 Note R’000 R’000 R’000 R’000 REVENUE Exchange revenue 15 674 911 15 202 313 15 372 333 14 935 870 Service charges 22 14 063 470 13 242 118 13 903 680 13 099 805 Rental of letting stock and facilities 23 317 890 306 606 317 890 306 606 Finance income 24 665 635 640 678 653 365 632 187 Licences and permits 44 386 41 844 44 386 41 844 Agency services 150 256 132 469 150 256 132 469 Other income 25 368 368 751 851 237 850 636 212 Gains on disposal of property, plant and equipment 64 906 86 747 64 906 86 747

Non-exchange revenue 12 695 583 12 319 188 12 818 591 12 427 584 City improvement districts (CIDs) 25 – – 118 487 106 869 Property rates 26 5 542 203 5 074 606 5 546 774 5 076 445 Fuel levy 1 895 992 1 706 690 1 895 992 1 706 690 Fines 729 140 100 524 729 140 100 524 Government grants and subsidies 27 4 442 190 5 394 440 4 442 190 5 394 440 Public contributions 28 86 058 42 928 86 008 42 616

Total revenue 28 370 494 27 521 501 28 190 924 27 363 454

EXPENDITURE Employee-related costs 29 8 691 018 7 490 464 8 640 854 7 446 199 Remuneration of councillors 30 120 153 111 881 119 708 111 673 Impairment costs 31 1 327 820 934 057 1 328 226 933 922 Collection costs 174 129 183 024 174 129 183 024 Depreciation and amortisation expenses 32 1 774 683 1 641 953 1 752 270 1 620 275 Finance costs 33 808 782 730 283 807 283 728 669 Bulk purchases 34 6 591 232 6 391 186 6 591 232 6 391 186 Contracted services 3 405 865 2 911 396 3 312 529 2 825 946 Grants and subsidies paid 35 115 034 103 357 115 021 103 144 General expenses 36 3 665 698 3 547 265 3 688 252 3 574 247 Losses on disposal of property, plant and equipment 2 443 1 594 1 944 1 443 Total expenditure 26 676 857 24 046 460 26 531 448 23 919 728

Surplus from operations 1 693 637 3 475 041 1 659 476 3 443 726 Taxation 37 (8 487) (8 908) – – Surplus after taxation 1 685 150 3 466 133 1 659 476 3 443 726

Attributable to owners of the controlling entity 1 677 137 3 457 245 Attributable to non-controlling interest 21 8 013 8 888 SURPLUS FOR THE YEAR 1 685 150 3 466 133

1 Comparative restated: see note 46 for more details.

122 INTEGRATED Annual Report | 2013/14 Balance at30June2012 2013 f STATEME Balance at30June2012 2013 Surplus at30June2013 Surplus at30June2013 Transfer to/(from) Transfer to/(from) P purchased P Surplus fortheyear 2014 2013 June 30 at Balance Surplus fortheyear 2014 2013 June 30 at as Balance Transfer (from)/to interest holders Share purchases bynon-controlling P Transfer (from)/to forshare purchases Balance at 30 June 2014 June 30 at Balance Transfer (from)/to purchased P Balance as at 30 June 2014 June 30 at as Balance r r r r o operty, plant and equipmentpurchased operty, plantandequipment operty, plant and equipmentpurchased operty, plant and equipment r

t h e

year

e N nd T e d 30Jun O F C H e 2014 development A 504 356 1 281 721 511 743 20 279 133 144 658 22 721 611 22 658 144 279 133 20 511 743 721 1281 356 504 2 6 7 7 4612 1 2 9 1570 19255478 135770 16827990 496182 1274073 521463 468 419 1 187 993 563 504 22 000 972 234 947 24 455 835 835 455 24 947 234 972 000 22 504 563 1187 993 419 468 N (106 (612038) (21006) (388 1 8 5 6 (457093) 51761 419180 (13848) (209 (512908) (22089) Housing 9 6966 551 (639146) 15561 619686 3899 GES R’000 fund – – – – development replacement IN 504 356 1 281 721 511 743 20 159 376 22 457 196 196 457 22 159 20 376 511 743 721 1281 356 504 2 6 7 7 4612 1 2 5 19013470 16721752 496182 1274073 521463 468 419 1 187 993 563 504 21 896 756 24 116 24 672 756 21 896 504 563 1187 993 419 468 (106 (612038) (21006) (388 1 8 5 6 (457093) 51761 419180 (13848) (209 (512 908) (22089) Housing reserve 9 6966 551 (639146) 15561 619686 3899 Capital

R’000 R’000 N fund – – – – – – ET ASSETS ET ASSETS INTEGRATED A INTEGRATED replacement E insurance M conomic reserve reserve Capital unicipality R’000 R’000 Self- – – – – – – – nn – u Accumulated a

34725 8 3466133 8888 3457245 16717 1 1685150 8013 1677137 e l R 633044 534997 ntity insurance (322 33202 (33202) e reserve surplus po

o R’000 R’000 f Self- rt C |2 – – – – – ap 013/14 Accumulated e T 34376 3443726 3443726 16946 1659476 1659476 controlling 633044 534997 ow 904 49074 49074 interest surplus R’000 R’000 n Non- – – – – R’000 R’000 Total Total – – – – – – – – – 123

Municipality of Economic entity Cape Town Restated1 Restated1 2014 2013 2014 2013 Note R’000 R’000 R’000 R’000 CASH FLOW FROM OPERATING ACTIVITIES Cash receipts from ratepayers, government and other 26 686 088 24 407 168 26 515 253 24 264 338 Cash paid to suppliers and employees (22 056 756) (18 888 392) (21 937 504) (18 797 879) Cash generated from operations 38 4 629 332 5 518 776 4 577 749 5 466 459

Finance income 741 644 690 369 729 374 681 878 Finance costs (793 048) (647 320) (791 549) (645 706) Taxation (11 871) (11 614) – –

NET CASH FROM OPERATING ACTIVITIES 4 566 057 5 550 211 4 515 574 5 502 631

CASH FLOW FROM INVESTING ACTIVITIES Additions to property, plant and equipment and other (4 544 893) (5 900 195) (4 502 293) (5 868 809) Proceeds on disposal of assets 71 479 93 835 71 458 93 472 Increase in long-term receivables (1 751) (3 125) (1 751) (3 125) Increase in investments (2 113 558) (574 187) (2 263 558) (574 187)

NET CASH FROM INVESTING ACTIVITIES (6 588 723) (6 383 672) (6 696 144) (6 352 649)

CASH FLOW FROM FINANCING ACTIVITIES Proceeds from borrowings 86 2 384 420 – 2 384 420 Repayment of borrowings (346 397) (166 899) (345 067) (165 311) Share purchases by minority interest holders 49 074 – – – Increase in deposits 65 237 41 847 62 000 33 273

NET CASH FROM FINANCING ACTIVITIES (232 000) 2 259 368 (283 067) 2 252 382

NET (DECREASE)/INCREASE IN CASH AND CASH EQUIVALENTS 39 (2 254 666) 1 425 907 (2 463 637) 1 402 364 Cash and cash equivalents at the beginning of the year 4 907 440 3 481 533 4 730 196 3 327 832 Cash and cash equivalents at the end of the year 2 652 774 4 907 440 2 266 559 4 730 196

1 Comparative restated: An amount of R85,05 million was reclassified between cash generated from operations and finance income.

124 INTEGRATED Annual Report | 2013/14 cash equivalents and cash in decrease Net N year the for Surplus Total expenditure N N STATEMENT FLOW CASH equipment Losses ondisposalofproperty, plantand General expenses Grants andsubsidiespaid Contracted services Bulk purchases Finance costs D Collection costs I Remuneration ofcouncillors revenue Total Employee-related costs P Government grantsandsubsidies Government Fines Fuel levy P equipment Gains ondisposalofproperty, plantand O Agency services Licences andpermits Finance income Rental oflettingstockandfacilities Service charges PERFORMANCE STATEMENT FINANCIAL OF Total liabilities Total current liabilities Total non-current liabilities Total net and assets liabilities Total netassets Total assets Total current assets Total non-current assets STATEMENT OF POSITION FINANCIAL f A STATEME mpairment costs ublic contributions r o et cashfr et cashfr et cashfr epr ther income operty rates ND r cainadaotsto xessi 17463 19131 19434 8 9 9,66 189691 1964374 1941391 1774683 iv eciation andamortisationexpenses

t h e ACT om (used)financing om (used)investing om (used)operating

year

e N U nd T AL AM e d 30Jun O F C O e OUN 2014–EconomicEntity M 41.2.3 41.2.2 41.2.1 Note P AR ii 4 9 2 8 5 0 1 1 18,63 1016914 5459104 5123583 4442190 viii i 2443 vii i 2 4 1326 6 1 5040 (332,18) (560430) 168710 183256 729140 vii TS i 1504 954 2 9 740 6,09 7460 122494 39 544 115034 vi i 7 2 1072 9 7 1 4 8,58 16349 190478 190732 174129 iii ix i 6 0 6 0 6 0 404 5,93 4094 69000 69000 64906 vi v 1026 2 9 1492 (524 (11,31) (15264) 134992 121993 150256 iv i 436 561 920 ( 0)(13,00) (5106) 39280 35601 44386 iii i 2200 (9 4) 5813 (6 4)61,21 (366143) (598143) (598143) (232000) ii 0 8 8390 6 1 5 2 6,39 55228 864010 863950 808782 v ii v i 6565 1 1 5113 (5 2)(30,23) (154522) 511113 517217 665635 ii ( 8 2) 51903 ( 3 3) 5 8 (19,00) 1051987 (5536736) (5109063) (6588723) i 86108 83449 95014 1 1 8,61 819116 9510134 8304409 8691018 i 1 9 3641 3 2 1 3 5,62 18933 336823 336471 317890 i 1 0 1 10520 1 2 2 2 0 9,85 1124908 11425726 11085280 10300818 i 2 8 4 98592 2 0 7 217 724 170 903 20 912 19 805 446 685 20 28 370 494 28 661 417 28 854 229 483 735 735 483 229 854 28 661 28 417 370 494 28 26 676 857 26 312 336 27 397 310 720 453 2,63 2,63 453 720 310 27 397 312 26 336 676 26 857 1 6 7 46452 1 1 8 3158 2,44 351518 14414988 14604532 14063470 1,76 223040 12689826 11249547 12466786 2 5 3 48512 2 4 3 5455 (2,15) (514505) 23941330 24805182 24455835 3 4 6 35584 3 1 7 14169 (4,25) (1421689) 33418774 33525814 34840463 45 141 281 44 611 094 44 844 500 500 844 44 611 44 094 141 45 281 500 844 44 611 44 094 141 45 281 (2 254 666) (1 260 103) (1 495 696) 758 970 758 (1 696) 495 (1 103) 260 666) 254 (2 I 1 693 637 2 349 081 1 456 919 (236 718) (236 919 1456 081 2349 637 1693 36568 37419 36578 20 3665718 3774189 3665698 45607 44713 46913 316 1,58 73126 4639183 4447103 4566057 34585 32912 34719 124 1,20 0,25 41244 16679 3447109 3289162 6607911 3405865 6898881 6591232 13780 8 5 9137 (2 6)(47,32) (426463) 901357 886357 1327820 55223 54738 54738 (1 1)(2,12) (114815) 1895992 1895992 5427388 1895992 5427388 5542203 82860 85635 82334 ( 1)(0,06) (5316) 8213344 8556365 8218660 S 2 5 1371 2 2 358 2,88 3568 123721 123721 120153 6 6 2075 9 2 7 4)(23,69) (70546) 297822 290755 368 ON 608 569 907 299 13,09 12959 99017 55629 86058 Actuals R’000

O INTEGRATED A INTEGRATED F T Approved budget H R’000 E B – nn u a UD l R budget e po R’000 Final GET 4 ( 3)(609,75) (2439) 4 rt |2 013/14 Final budget and actual

(296 781) (296 781) (296

Variance: amounts R’000 – Variance (16,25) (16,25) (50,74) (50,74) (0,66) (0,66) (0,66) 1,04 1,04 1,68 1,68 % – – 125

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 STATEMENT OF COMPARISON OF THE BUDGET AND ACTUAL AMOUNTS for the year ended 30 June 2014 – Economic Entity (continued)

Variance: Final budget Approved Final and actual Actuals budget budget amounts Variance Note R’000 R’000 R’000 R’000 % CAPITAL EXPENDITURE 41.2.4 City Health i 25 185 23 717 30 096 4 911 16,32 City Manager ii 13 070 13 892 14 095 1 025 7,27 Compliance and Auxiliary Services iii 24 044 37 865 31 343 7 299 23,29 Community Services iv 161 422 222 027 209 126 47 704 22,81 Corporate Services 286 544 258 892 294 109 7 565 2,57 Economic, Environmental and Spatial Planning v 54 193 58 459 64 469 10 276 15,94 Finance vi 13 384 11 784 44 204 30 820 69,72 Safety and Security 63 809 67 927 64 280 471 0,73 Social Development and Early Childhood Development vii 7 142 5 460 7 838 696 8,88 Tourism, Events and Marketing viii 23 102 28 661 26 530 3 428 12,92 Transport for Cape Town* ix 1 113 033 1 415 743 1 617 285 504 252 31,18 Human Settlements x 564 330 626 894 772 040 207 710 26,90 Solid Waste Management 136 619 264 938 139 505 2 886 2,07 Water and Sanitation xi 823 478 956 230 933 026 109 548 11,74 Cape Town Electricity xii 1 192 938 1 458 104 1 363 695 170 757 12,52 Subsidiaries xiii 42 599 246 490 48 766 6 167 12,65 Total1 4 544 892 5 697 083 5 660 407 1 115 515 19,71

1 The actual capital expenditure amount does not include the contributed assets amount of R33,44 million. See Appendix B. *Previously known as Transport, Roads and Stormwater.

126 INTEGRATED Annual Report | 2013/14 Surplus for the year the for Surplus Total expenditure CASH FLOW STATEMENT FLOW CASH equipment Losses ondisposalofproperty, plantand General expenses Grants andsubsidiespaid Contracted services Bulk purchases Finance costs D Collection costs Remuneration ofcouncillors I revenue Total Employee-related costs P Government grantsandsubsidies Government P Fines Fuel levy equipment Gains ondisposalofproperty, plantand O Agency services Licences andpermits equivalents cash and cash in decrease Net PERFORMANCE STATEMENT FINANCIAL OF Total net and assets liabilities Total netassets Finance income N Total liabilities Total current liabilities Total non-current liabilities Total assets Rental oflettingstockandfacilities Service charges Total current assets Total non-current assets STATEMENT OF POSITION FINANCIAL f A STATEME N N mpairment costs ublic contributions r o epr et cashfr et cashfr et cashfrom (used)operating ther income operty rates ND r cainadaotsto xessi 17220 19481 19784 8 5 9,58 185554 1937824 1914841 1752270 iv eciation andamortisationexpenses

t h e ACT om (used)financing om (used)investing

year

e N U nd T AL AM e d 30Jun O F C O e OUN 2014–CityofCapeTown M 41.2.2 41.2.3 41.2.1 P Note AR ii 4 9 2 8 5 0 1 1 18,63 1016914 5459104 5123583 4442190 viii i 1944 vii i 2 4 1326 6 1 5040 (332,19) (560430) 168710 183256 729140 vii TS i 1501 954 2 9 743 6,10 7473 122494 39 544 115021 vi i 7 2 1072 9 7 1 4 8,58 16349 190478 190732 174129 iii ix i 6 0 6 0 6 0 404 5,93 4094 69000 69000 64906 vi v 1026 2 9 1492 (524 (11,31) (15264) 134992 121993 150256 iv i 436 561 920 ( 0)(13,00) (5106) 39280 35601 44386 iii 0 8 8384 6 5 5 7 6,56 56671 863954 863894 807283 v ii v i 6335 0 4 5345 (4 5)(29,79) (149950) 503415 503143 653365 ii i 2307 (9 4) 5813 (1 7)52,68 (315076) (598143) (598143) (283067) ii 86084 82348 94913 1 2 8,65 818329 9459183 8253458 8640854 i 1 9 3641 3 2 1 3 5,62 18933 336823 336471 317890 i ( 9 4) 51903 ( 3 3) 5 0 (20,94) 1159408 (5536736) (5109063) (6696144) i i 26 531 448 26 144 082 27 225 923 694 475 2,55 2,55 475 694 923 27 225 082 144 26 531 26 448 4 2 2 46104 4 4 0 122 471 500 844 44 611 44 094 029 722 44 4 2 2 46104 4 4 0 122 471 500 844 44 611 44 094 029 722 44 20 605 357 19 805 912 20 903 170 297 813 297 170 903 20 912 19 805 357 605 20 28 190 924 28 478 397 28 679 285 488 361 488 679 285 28 478 397 28 924 190 28 2 1 7 48512 2 4 3 1532 (0,73) (175342) 23941330 24805182 24116672 1 5 0 12957 1 8 2 2975 1,89 239725 12689826 11249547 12450101 1 0 8 44231 1 5 4 3087 2,46 350867 14254547 14442391 13903680 (4,19) (1398904) 33418774 33525814 34817678 I (2 463 637) (1 260 103) (1 495 696) 967 941 967 (1 696) 495 (1 103) 260 637) 463 (2 36822 37077 36913 (919 (0,52) (19119) 3669133 3780737 3688252 33259 31212 33019 760 1,12 0,25 37600 16679 3350129 3192182 6607911 3312529 6898881 6591232 13826 8 9 9102 (2 3)(47,40) (427134) 901092 886092 1328226 55674 54738 54738 (1 8)(2,20) (119386) 1895992 1895992 5427388 1895992 5427388 5546774 81526 85635 82334 808 0,71 58088 8213344 8556365 8155256 99431 1 8 8 14576 15135 13,32 1521375 11425726 11085280 9904351 45554 44713 46913 2 0 2,66 123609 4639183 4447103 4515574 1 659 476 2 334 315 1 453 362 362 1453 315 2334 476 1659 S 1 0 1371 2 2 403 3,24 4013 123721 123721 119708 5 3 2390 9 1 6 2)(22,45) (65320) 291017 283950 356337 ON 608 569 907 309 13,14 13 009 99017 55629 86008 Actuals R’000

O INTEGRATED A INTEGRATED F T Approved budget H R’000 E B – nn u a UD l R budget e po R’000 Final GET 4 ( 4)(485,00) (1940) 4 rt |2 013/14 Final budget and actual

(206 114) (206

Variance: amounts R’000 – Variance (64,72) (64,72) (14,18) 1,42 1,42 0,27 0,27 0,27 0,27 1,70 1,70 % – 127

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 STATEMENT OF COMPARISON OF THE BUDGET AND ACTUAL AMOUNTS for the year ended 30 June 2014 – City of Cape Town (continued)

Variance: Final budget Approved Final and actual Actuals budget budget amounts Variance Note R’000 R’000 R’000 R’000 % CAPITAL EXPENDITURE 41.2.4 City Health i 25 185 23 717 30 096 4 911 16,32 City Manager ii 13 070 13 892 14 095 1 025 7,27 Compliance and Auxiliary Services iii 24 044 37 865 31 343 7 299 23,29 Community Services iv 161 422 222 027 209 126 47 704 22,81 Corporate Services 286 544 258 892 294 109 7 565 2,57 Economic, Environmental and Spatial Planning v 54 193 58 459 64 469 10 276 15,94 Finance vi 13 384 11 784 44 204 30 820 69,72 Safety and Security 63 809 67 927 64 280 471 0,73 Social Development and Early Childhood Development vii 7 142 5 460 7 838 696 8,88 Tourism, Events and Marketing viii 23 102 28 661 26 530 3 428 12,92 Transport for Cape Town* ix 1 113 033 1 415 743 1 617 285 504 252 31,18 Human Settlements x 564 330 626 894 772 040 207 710 26,90 Solid Waste Management 136 619 264 938 139 505 2 886 2,07 Water and Sanitation xi 823 478 956 230 933 026 109 548 11,74 Cape Town Electricity xii 1 192 938 1 458 104 1 363 695 170 757 12,52 Total1 4 502 293 5 450 593 5 611 641 1 109 348 19,77

1 The actual capital expenditure amount does not include the contributed assets amount of R33,39 million. *Previously known as Transport, Roads and Stormwater.

128 INTEGRATED Annual Report | 2013/14 The financial statements have been prepared in accordance with the Generally Recognised Accounting Recognised Generally the accordance in with prepared been have statements financial The ofBasis presentation basis. going-concern on a prepared been have statements financial The of preparation. time at the available information best the on based are these – statements annual the financial in preparing estimates and assessments has used Management otherwise. indicated where except used, convention has been cost historical below. out areThe set in note 46, stated as except year, previous in the applied those consistent with are in all materialrespects which accounting principal Entity’s policies, The ACCOUNTINGSIGNIFICANT POLICIES statements. financial annual 106 consolidated of mandate’ these page on entity’s ‘Reporting under are described activities principal Entity’s the while information’ under ‘General isdisclosed place business of principal and office registered entity’s economic of the address The INFORMATIONGENERAL f NO • statements: financial the in recognised amounts the on effect significant have most the which assumptions, and estimates judgements, I Errors’. and Estimates GRA GRA of the forapplication the principles the out that sets a directive has issued ASB The st • • • • • • • n th

o andards issued by the Accounting Standards Board (ASB) and approved by the Minister of Finance effective. as Minister by the approved and Accounting by the (ASB) Standards Board issued andards Leases where risks and rewards of ownership are not transferred to the lessee are classified as operating leases. leases. operating as are classified to lessee arethe not transferred rewards of and ownership risks where Leases Op s Ca V Bu at that time. be will condition their what and lives, useful of their to end the used or sold be will assets the whether on judgement management’s on based are also of assets values residual The estimated appropriate. where expectation, useful-life optimum the to determine assets return on required and requirements service of technology, impact the considers Management estimates. management’s on are based of assets lives useful The Us Pr Im Im to uncertainty. significant subject Pen lease. of the period straight-linethe over basis on a performance of financial statement in the are recognised leases operating under received has determined that the City does not control assets that meet the definition of cash-generating assets, and that the GRA thatthe and assets, cash-generating of definition the that meet control not assets does City that the has determined ensure continuedfinancial sustainability. to delivery. are cost-reflective charges and service Tariffs is objective primary entity, its as isaprofit-oriented not City The statements. to annual notes the in financial the are explained differences valuations. actuarial using 12 in notes out set as respectively. liabilities, 48 and contingent measuring when as well as provisions, measuring and recognising when is required judgement Management’s plant equipment. and of property, all classes across performed was This amount. carrying the below has declined asset of amount the recoverable the which to extent of the an assessment on is based plant equipment and of property, impairment of the in respect calculation The classes. debtor all across categories identifiable service- per performed was This to make payments. ability of their due, assessment an and already payments on defaulted have debtors to which extent of the assessment an on is based of receivables impairment of the in respect calculation The increases. ratesfuture and pension mortality increases, future salary rates assets, of returnon discount rates, expected about assumptions making involves valuation actuarial The actuarial valuations. using determined is benefits medical employment andplansother pension of defined-benefit cost The r tandard for the impairment of non-cash-generating assets will apply to all assets of the City. of the to all assets apply will assets of non-cash-generating impairment for the tandard ar P e process of applying the Entity’s accounting policies, management has made the following significant accounting significant following the has made management accounting Entity’s the policies, of applying e process

ovisions andcontingent liabilities eful lives of property, plant and equipment and plant property, of lives eful pairment of property, plant and equipment and plant property, of pairment pairment of receivables sh-generating assets dget informationdget t R iances between budget and actual amounts are regarded as material differences when a 5% variance exists. All material All a5% when materialdifferences varianceexists. as are regarded amounts actual and budget between iances erating lease commitments – Entity as lessor as –Entity commitments lease erating TES T sion and other post-employment benefits h eporting Framework hierarchy, Framework of GRA ‘Standard in the out set as eporting e

year O

e nd T e H d 30Jun E C ON e 2014 S N o pr O L ofit element is included in the determination of a tariff. As such, management As such, management tariff. of a determination the in is included element ofit ID ATE P ro visions are discounted where the effect of discounting is material, effect the arewhere discounted visions D ue t ue D o the long-term nature of these plans, such estimates are such plans, estimates nature of these long-term o the INTEGRATED A INTEGRATED F IN A P 3o N n Accounting nn C u a I l R AL STATEME e po rt P

|2 3 guidelines in determining the the in determining 3 guidelines P ol icies, Changes in Accountingicies, 013/14 P ra N ctices (GRA ctices TS P ay ments ments

P P 129 )

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued)

Adoption of new and revised standards In the current year, the Entity has adopted all new and revised standards and interpretations issued by the ASB that are relevant to its operations and are effective. The adoption of these new and revised standards and interpretations has resulted in changes to the accounting policies. The Entity has not adopted any GRAP standard that is not yet effective, but has based its accounting policies on such standards, except for GRAP 18. Effective dates have been given for some of the standards, while for others no effective dates have yet been determined. At the date of submission of these financial statements for the year ended 30 June 2014, the following standards had been issued but were not yet effective: • Annual periods commencing on or after 1 April 2015: GRAP 105 – Transfers of functions between entities under common control GRAP 106 – Transfers of functions between entities not under common control GRAP 107 – Mergers

• No effective dates provided yet: GRAP 18 – Segment reporting GRAP 20 – Related-party disclosures (revised) GRAP 32 – Service concession arrangements: Grantor GRAP 108 – Statutory receivables

All the above standards, where applicable, will be complied with in the financial statements once the standards take effect. Preliminary investigations indicated that, other than additional disclosure, the impact of the standards on the financial statements will be minimal.

CONSOLIDATION The Entity’s financial statements incorporate the financial statements of the parent entity, i.e. the City of Cape Town, and all its subsidiaries and joint ventures, presented as a single economic entity, and consolidated at the same reporting date as the parent entity. Subsidiaries Subsidiaries are entities controlled by the Entity. The existence and effect of potential voting rights that are currently exercisable or convertible without restriction are considered when assessing whether the Entity controls another entity. Subsidiaries are consolidated from the date that effective control is transferred to the Entity, and are no longer consolidated from the date that effective control ceases. For certain entities, the Entity has entered into contractual arrangements that afford the Entity power to exercise control over the operations of such entities. Because the group controls such entities in this manner, they are considered to be subsidiaries and are therefore consolidated in the annual financial statements. All intergroup transactions, balances and unrealised gains and losses are eliminated as part of the consolidated process. The interests of non-controlling shareholders in the consolidated equity and results of the group are shown separately in the consolidated statement of financial position and statement of financial performance respectively. Losses applicable to the non- controlling interest in a subsidiary are allocated to the non-controlling interest, even if doing so causes the non-controlling interest to have a deficit balance.I nvestments in subsidiaries are stated at cost less impairment losses in the separate financial statements of the Entity with intergroup investments eliminated on consolidation.

HOUSING FUNDS The housing development fund was established in terms of the Housing Act (Act No.107 of 1997). Housing development fund Sections 15(5) and 16 of the Housing Act, which came into effect on 1 April 1998, required the Entity to maintain a separate housing operating account. This legislated separate operating account is known as the housing development fund and is fully cash-backed. In terms of section 14(4)(d)(ii)(aa) of the Housing Act, read with, inter alia, section 16(2), it is required that the net proceeds of any letting, sale or alienation of property previously financed from government housing funds, be paid into a separate operating account, and be utilised by the Entity for housing development in accordance with the National Housing Policy. Unrealised housing proceeds In order to comply with section 14(4)(d)(i) and (ii) of the Housing Act, in terms of which all net proceeds need to be paid into the housing development fund, it was necessary to create a holding account that represents the unrealised funds due by long-term housing selling developments and sponsored loan debtors. This account is reduced when debtors are billed for their current loan repayments.

130 INTEGRATED Annual Report | 2013/14 difference between the sales proceeds and the carrying value, and is recognised in the statement of financial performance. of financial statement in the value, is recognised and carrying the and proceeds sales the between difference the as is determined plant equipment and of of item an retirement property, or disposal the from arising loss gain or The gain. for any economic assets of the to community, intention of the no disposing with service asocial to provide acquiresassets maintains and Entity The is expensed. I performance. of standard assessed originally the of excess areenhanced in assets the of delivery potentialservice or benefits that future economic is it if probable is capitalised plant equipment and relating to property, expenditure Subsequent fair date of the acquisition. on value W P EQUIPMENT AND PROPERTY, PLANT • • Insurance reserve • • • CRR: of the utilisation and creation for the are set provisions following The accumulated fromthe to surplus CRR. the are transferred I Capital replacement reserve (CRR) requirements. of in specific terms maintains reserves and creates Entity The RESERVES f NO f e n or

roperty, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment losses. losses. accumulated and impairment accumulated depreciation less at cost, are stated plant equipment and roperty, o here property, plant and equipment are acquired through non-exchange transactions, the cost is deemed to be the item’s the to be is deemed cost the transactions, are acquired non-exchange through plant equipment and here property, from the reserve to the expense account in the statement of financial performance. of financial account statement in the to expense the reserve the from Commissioner. by the prescribed A C determination of actuarial an basis the on is determined value of which capitalised the is that of annual continuing pensions, liability The at 31 as Entity of the continuingvalue liability capitalised Commissioner, thanthe the with less shall be not in market aggregate the of which values securities and/or cash the by C the by issued Commissioner,exemption of prescribed as and certificate The any shortfall in the aggregate value of the securities as at 31 as securities value of the aggregate in the any shortfall annually Commissioner, by the to is isrequired determined meet Entity the and marketliability. securities of value the The Co Se Wh Th Th diseases in terms of section 84 of the C of the 84 of in section terms diseases and injuries for Commissioner occupational to Compensation the contributions from making exempted has been Entity The at yearend. insurance of the reserve adequacy the to year each assess is obtained valuation actuarial An assets. in net of changes statement the via reserve operating thethe insuranceaccount on insurance or from to is transferred deficit or net surplus The performance. financial of statement such in as the are shown and expense, an as are regarded reinsurers Reinsurance to premiums paid external assets. insured necessary. claims that may covers occur, and to reinsurance deemed where established subject has been insuranceA general reserve amount. by a corresponding accumulated the is surplus credited and bymaintenance Council. directed otherwise unless xpenditure only restores the originally assessed standard of performance, it is regarded as repairs and maintenance, and repairs as and is regarded it of performance, standard assessed originally the restores only xpenditure r der to finance the acquisition of infrastructure and other property, plant and equipment from internal sources, amounts amounts sources, from internalequipment plant and property, and other of toinfrastructure acquisition financethe der

e CRR may only be utilised for purchasing items of property, plant and equipment, and may not be used for their for their used may and be not plant equipment, and for purchasing of items utilised e CRRproperty, be may only CRR until the up utilised. fundsthat back are invested e cash lf-insurance reserve lf-insurance mpensation for occupational injuries and diseases reserve (COID) reserve diseases and injuries occupational for mpensation t enever an asset is purchased out of the CRR, an amount equal to the cost price of the asset is transferred from the CRR, CRR, the from is transferred asset of the price to cost equal the amount an CRR, of the out is purchased asset an enever TES T h e

year P re miums are charged to the respective services, taking into account claims history and replacement value of the of value the replacement and into taking account claims history services, to respective miums the are charged O

e nd T e H d 30Jun E C ON e 2014(continued) OI S D O A ct (Act (Act ct L D ec ID ember of each year. of each ember OI ATE N D o.

reserve has been established to continuingequate to value of the the established has been reserve 130 of 1993). D D ec INTEGRATED A INTEGRATED F ember. Monthly pensions are funded by transferring funds by transferring are funded ember. pensions Monthly IN A N nn C u a I l R AL STATEME OI e po D

rt Act, requires the Entity to deposit to deposit Entity the requires Act, |2 013/14 N TS

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APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued)

Depreciation rates Depreciation is calculated at cost, using the straight-line method, over the estimated useful lives of the assets. The residual value, depreciation method and useful life, if not insignificant, are reassessed annually with the effect of any changes in estimate accounted for on a prospective basis. The depreciation rates are based on the following estimated useful lives:

Years Years Infrastructure Other Roads and paving 10 – 50 Buildings 2 – 50 Electricity 15 – 50 Other vehicles 4 – 10 Water 15 – 30 Office equipment 2 – 10 Sewerage 15 – 20 Watercraft 10 Housing 30 Bins and containers 5 Telecommunications 10 – 30 Landfill sites 30 Specialised vehicles 8 – 20 Library books 1 Community Furniture and fittings 5 – 15 Recreational facilities 20 – 30 Central processing units 2 – 6 Security 5 – 10 Plant and equipment 2 – 10

Assets under construction are carried at cost. Depreciation of an asset commences when the asset is ready for its use as intended by management. Freehold land is not depreciable as it has an indefinite useful life. Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned assets or, where appropriate, the term of the relevant lease, and are recognised in the statement of financial performance.

HERITAGE ASSETS A heritage asset is defined as an asset that has a cultural, environmental, historical, natural, scientific, technological or artistic significance, and is held and preserved indefinitely for the benefit of present and future generations. Heritage assets are stated at cost, less accumulated impairment losses. Where a heritage asset is acquired through a non- exchange transaction, its cost is deemed to be its fair value as at the date of acquisition. Transfers to heritage assets are made only when the asset meets the definition of a heritage asset, and transfers from heritage assets are made only when the asset no longer meets the definition of a heritage asset. Transfers to and from heritage assets are done at the carrying amount of the assets transferred, at the date of transfer. The gain or loss arising from the disposal or retirement of a heritage asset is determined as the difference between the net disposal proceeds, if any, and the carrying value, and is recognised in the statement of financial performance.H eritage assets are not depreciated, since their long economic life and high residual value mean that any depreciation would be immaterial.

INVESTMENT PROPERTIES Investment properties are immovable land and/or buildings that are held to earn rental income and/or for capital appreciation, and are stated at cost less accumulated depreciation. Investment property excludes owner-occupied property that is used in the production or supply of goods or services or for administrative purposes, or property held to provide a social service. Investment properties are stated at cost less accumulated depreciation and accumulated impairment losses. Where investment properties are acquired through non-exchange transactions, the cost is deemed to be the item’s fair value on the date of acquisition. Investment property other than vacant land is depreciated on the straight-line basis over the useful lives of the assets, estimated at 20 to 50 years. An investment property is derecognised upon disposal or when it is permanently withdrawn from use, and when no future economic benefits or service potential are expected from its disposal. Any gain or loss arising from the retirement or disposal is recognised in the statement of financial performance. Direct income and expenses arising from investment property are disclosed as part of general income and expenses, and are thus not disclosed separately, as they are not material.

INTANGIBLE ASSETS An intangible asset is defined as an identifiable non-monetary asset without physical substance, held for use in the production or supply of goods or services, for rental to others or for administrative purposes.

132 INTEGRATED Annual Report | 2013/14 The recoverable amount of an asset or a cash-generating unit is the higher of its fair value less costs to sell, and its value-in-use. to its sell,and costs fair less value of its higher unit is the acash-generating or of asset amount an recoverable The of disposal. costs less willing parties, knowledgeable, between transaction arm’s-length in the of asset an sale the from obtainable amount is the to sell costs Fair less value D I tax expense. and income excluding finance costs of an asset, to disposal the attributable directly costs are incremental of disposal costs The groups of assets. or assets other from cash inflows the of from independent continuingare which use,largely flows cash return that generates a generating commercial of objective primary the with held assets group of identifiable smallest unit is the A cash-generating thereon. losses impairment accumulated and depreciation accumulated any deducting after position of financial statement in the is recognised asset an at which amount is the amount carrying The (amortisation). depreciation potentialthrough service or benefits future economic asset’s of the loss of the the profit-orientated CT profit-orientated the by that adopted consistentwith in amanner is deployed asset an return. acommercial When of generating objective primary Town Cape by the held assets are those assets Cash-generating ASSETS CASH-GENERATING OF IMPAIRMENT loss. or in profit immediately recognised is loss of impairment an Areversal years. in prior asset for the recognised been loss impairment no had determined have been that amount would carrying the not exceed does amount carrying increased that the so but amount, service recoverable its of estimate to revised the is increased asset of amount the carrying the reverses, subsequently loss impairment an Where deficit. in or surplus immediately is recognised loss impairment An amount. service recoverable to its is reduced I adjusted. been havenot flows of future cash estimates the which for asset the to specific risks the and money value of time the of current marketassessments reflects discount rate used The approach. units service or cost restoration cost, replacement depreciated of the appropriate most using the is determined and asset, potentialof the remaining of value the service present is the use. The value-in-use to value-in- sell,and costs of fair higher is the less value asset of amount anon-cash-generating service recoverable The impaired. may be asset that the year, isindication an there every time whenever as well as same annually at the I any). (if loss impairment of the extent the to determine of impairment. is any indication there whether to determine are reviewed assets of non-cash-generating amounts carrying period, At reporting of each end the assets. non-cash-generating as are classified of Town Cape City All assets IMPAIRMENT OF NON-CASH-GENERATING ASSETS software Computer rights Acquisition lives: useful estimated following the on rates are based amortised The basis. aprospective on accounted estimate in anyof for changes annually, effect the with life,are useful and reassessed insignificant, not if method I ratesAmortisation of relevantoverheads. portion appropriate an and costs employee development software oneyear. exceeding benefit the by Entity, controlled and haveprobable a system unique and identifiable an with associated are clearly costs the if assets intangible as costs software development computer recognises Entity The a I f NO mp f th nt nt assets intangible Where losses. accumulated and impairment accumulated depreciation less at cost are stated assets ntangible re acquired through non-exchange transactions, the cost is deemed to be the item’s the to be fair date of the acquisition. is deemed on value cost the transactions, re non-exchange acquiredthrough o ep angible assets with indefinite useful lives as well as intangible assets not yet available for use are tested for impairment impairment for are not tested yet use available for assets as intangible well as lives useful indefinite with assets angible value, residual amortisation The assets. of the lives useful over the basis straight-line the on are amortised assets angible r airment is a loss in the future economic benefits or service potential of an asset, over and above the systematic recognition recognition systematic the above and over potentialasset, an of service or benefits future in the economic is aloss airment e recoverable service amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset asset of amount the carrying the amount, carrying thanits less to be is estimated of asset amount an service e recoverable reciation (amortisation) is the systematic allocation of the depreciable amount of an asset over its useful life. useful over its of asset amount an depreciable of the allocation systematic is the (amortisation) reciation

t TES T h e

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e nd T I CC e H d 30Jun , it generates a commercial return. acommercial generates , it E C I f an ON y such indication exists, the recoverable service amount of the asset is estimated in order in order is estimated asset of amount the service recoverable the exists, y such indication e 2014(continued) S O L ID ATE 5 –10 Years 8 D I INTEGRATED A INTEGRATED F nt ernational Conventionernational Centre ( IN A N nn C u a I l R AL STATEME e po rt |2 013/14 P ty ) Ltd (CT D ir ect costs include include costs ect N I CC TS ) with the the ) with

133

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued)

Useful life is either: a) the period of time over which an asset is expected to be used by the CTICC; or b) the number of production or similar units expected to be obtained from the assets by the CTICC. Criteria developed by the CTICC to distinguish cash-generating assets from non-cash-generating assets are as follows: Identification When the carrying amount of a cash-generating asset exceeds its recoverable amount, it is impaired. The CTICC assesses at each reporting date whether there is any indication that a cash-generating asset may be impaired. If any such indication exists, the CTICC estimates the recoverable amount of the asset. Irrespective of whether there is any indication of impairment, the CTICC also tests a cash-generating intangible asset with an indefinite useful life or a cash-generating intangible asset not yet available for use for impairment annually, by comparing its carrying amount with its recoverable amount. This impairment test is performed at the same time every year. If an intangible asset was initially recognised during the current reporting period, that intangible asset was tested for impairment before the end of the current reporting period. Value-in-use The value-in-use of a cash-generating asset is the present value of the estimated future cash flows expected to be derived from the continuing use of an asset and from its disposal at the end of its useful life. When estimating the value-in-use of an asset, the CTICC estimates the future cash inflows and outflows to be derived from continuing use of the asset and from its ultimate disposal, and applies the appropriate discount rate to those future cash flows. Composition of estimates of future cash flows Estimates of future cash flows include: • projections of cash inflows from the continuing use of the asset; • projections of cash outflows that are necessarily incurred to generate the cash inflows from continuing use of the asset (including cash outflows to prepare the asset for use), which can be directly attributed, or allocated on a reasonable and consistent basis, to the asset; and • net cash flows, if any, to be received (or paid) for the disposal of the asset at the end of its useful life. Estimates of future cash flow exclude: • cash inflows or outflows from financing activities; and • income tax receipts or payments. The estimate of net cash flows to be received (or paid) for the disposal of an asset at the end of its useful life is the amount that the CTICC expects to obtain from the disposal of the asset in an arm’s-length transaction between knowledgeable, willing parties, after deducting the estimated costs of disposal. Discount rate The discount rate is a pre-tax rate that reflects current market assessments of the time value of money, represented by the current risk-free rate of interest and the risks specific to the asset for which the future cash flow estimates have not been adjusted. Recognition and measurement (individual asset) If the recoverable amount of a cash-generating asset is less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. This reduction is an impairment loss. An impairment loss is recognised immediately in surplus or deficit. Any impairment loss of a revalued cash-generating asset is treated as a revaluation decrease. When the amount estimated for an impairment loss is greater than the carrying amount of the cash-generating asset to which it relates, the CTICC recognises a liability only to the extent that is a requirement in the standard of GRAP. After the recognition of an impairment loss, the depreciation (amortisation) charge for the cash-generating asset is adjusted in future periods to allocate the cash-generating asset’s revised carrying amount, less its residual value (if any), on a systematic basis over its remaining useful life.

CASH AND CASH EQUIVALENTS Cash includes cash on hand, cash held with banks, and call deposits. Cash equivalents are short-term bank deposits with a maturity of three months or less from inception, readily convertible to cash without significant change in value. For the purposes of the cash flow statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of any bank overdrafts.

134 INTEGRATED Annual Report | 2013/14 and lump sum payments are charged against income in the year during which they become payable. become they duringwhich year in the income against are charged lump sumand payments contributions The municipalities. all from participating basis aproportional on future contributions increased or sum payments basis. method unit credit projected the on triannually based valued actuarially D payable. become they which year in the during income against are charged benefits of retirement payment for the obligations to fund The contributions periods. prior currentand the in service relating employee to benefits to payall employee assets sufficient hold not fund does the if contributions to payfurther obligation (a constructive or fund), haveentity will legal and no D plans. defined-benefit plans and defined-contribution of consist benefits Retirement and councillors. employees its for benefits retirement provides Entity The Retirement benefitplans EMPLOYEE BENEFITS risk-adjusted. discount been The ratenot has performance. financial of to statement unwinding of Any the discount is charged assets. of those cost of the part as are capitalised they to assets, arises. liability environmental the when and as is recognised for rehabilitation provision The requirements. regulatory and into environmental taking policy, account current technological, the on Entity’s site closure, landfill and based are rehabilitation comprising provisions, environmental long-term Estimated ENVIRONMENTAL REHABILITATION PROVISIONS as a finance cost. performance of financial statement in the recognised discount is unwinding the of periodic the of money. value of time impact The the of current marketassessments reflect that flows future cash expected by discounting the of discountingare isdetermined material, provisions effect the When estimated. reliably be can obligation of amount the the and obligation, the settle required be to potential will service or benefits economic embodying of resources that outflow an is probable it event, and a of result as a past obligation constructive or legal has a present Entity the when is recognised A provision PROVISIONS balances. closing and opening in the is included it applies, interest Where invested. donation grant, ofor transfer the receipt for the agreement in the out I recognised. initially are assets the revenuewhen as to are recognised any conditions that are subject not donations or transfers Grants, are met. donations, or transfers to grants, the attached conditions the topotential to transferor. revenuewhen the is transferred liability The service or benefits economic returns such future the Entity are breached, thatevent or that the inconditions specified, as potentialasset the of service or benefits future the economic consumes either thatEntity require thatto the conditions is subject asset an as recognised donation grant, or that transfer the to extent the is recognised liability A corresponding assets. as criteria recognition and for to Entity, definition the the meet transferred that have been resources the when assets as are recognised receivable or received donations and transfers Grants, AND RECEIPTSGRANTS ( tax for value-added accounts Entity The VALUE-ADDED TAX utility. and to age, condition their according down Consumables are written occurs. loss or write-down the during which period in the an expense as recognised are and values, net realisable estimated their to down written and inventories are identified slow-moving and Redundant condition. and location present their inventories to in the bringing incurred costs other and of conversion of purchase, costs all costs Cost of inventories comprises value. current and replacement of cost lower at the valued inventories are foramount, or anominal charge at no consumption or for distribution are held they Where charged. tariffs ( I INVENTORIES f NO nt of lower cost the at are and valued goods, finished and consumables in of progress, raw consist nventories work materials, determined on the weighted-average basis) and net realisable value, except for plants and compost, which are valued at the at the are valued which compost, value,and for except basis)plants realisable net and weighted-average the on determined o efi efi erest earned on the investment of grants, transfers and donations received is treated in accordance with the stipulations set set stipulations the in accordance is treated with received donations and transfers of grants, investment the on earned erest r ned-benefit plans are post-employment benefit plans other than defined-contribution plans. The defined-benefit funds are defined-benefit The plans. defined-contribution than plansother benefit post-employment plansare ned-benefit separate intocontributions fixed a pays entity an which plans under benefit plansare post-employment ned-contribution

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e nd T e H d 30Jun E C ON e 2014(continued) V AT S O ) on the payment basis. payment the ) on L ID ATE D INTEGRATED A INTEGRATED F IN A N D nn efi C u cits identified are recovered through lump are recovered identified cits a I l R AL STATEME e po rt I n so n so |2 013/14 far as the obligations relate far obligations the as N TS

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APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued)

Post-retirement pension funds Pensions paid to employees who had not been members of any of the official pension funds and who are entitled to a revenue pension, are recognised as an expense when incurred. Such pension payments are funded from a staff provident fund maintained for this purpose. Entitlement to these ex-gratia pension payments is subject to compliance with an acceptable pre- condition for non-membership of any of the pension funds associated with the Entity. The Entity makes the contributions on a monthly basis to the fund, which are charged to the operating account when employees have rendered the service entitling them to the contributions. Actuarial valuation of the liability is performed on an annual basis. The projected unit credit method has been used to value the obligations. The liability in respect of current pensioners is regarded as fully accrued, and is therefore not split between a past (or accrued) and future in-service element. The liability is recognised at the fair value of the obligation, together with adjustments for the actuarial gains and losses, and past service costs. Actuarial gains or losses are fully accounted for in the statement of financial performance in the year during which they occur. Medical aid: Continued members The Entity provides post-retirement benefits by subsidising the medical aid contributions of certain retired staff. According to the rules of the medical aid funds with which the Entity is associated, a member on retirement is entitled to remain a continued member of such medical aid fund, and the Entity will continue to subsidise medical contributions in accordance with the provisions of the employee’s employment contract and the Entity’s decision on protected rights. Post-retirement medical contributions paid by the Entity, depending on the employee’s contract, could be 60%, 70% or a subsidy indicated on a sliding scale. In each case, the employee is responsible for the balance of post-retirement medical contributions. External appointments after December 2000 do not qualify for a post-retirement medical aid subsidy. These contributions are charged to the operating account when employees have rendered the service entitling them to the contribution. The liability in respect of current pensioners is regarded as fully accrued, and is therefore not split between a past (or accrued) and future in-service element. The liability is recognised at the fair value of the obligation, together with adjustments for the actuarial gains and losses, and past service costs. Actuarial gains or losses are fully accounted for in the statement of financial performance in the year during which they occur. The projected unit credit method has been used to value the obligation. Short-term and long-term employee benefits The cost of all short-term employee benefits is recognised in the period during which the employee renders the related service. The Entity recognises the expected cost of performance bonuses only when the Entity has a present legal or constructive obligation to make such payment, and if a reliable estimate can be made. The Entity provides long service leave to eligible employees, payable on completion of years of employment. The Entity’s liability is based on an actuarial valuation. The projected unit credit method has been used to value the obligation. Actuarial gains and losses on the long-term incentives are fully accounted for in the statement of financial performance.

REVENUE RECOGNITION Revenue is recognised net of indirect taxes, rebates and trade discounts, and consists primarily of rates, grants from National and Provincial Government, service charges, rentals, interest received and other services rendered. Revenue is recognised when it is probable that future economic benefits or services potential will flow to the Entity, and when these benefits can be reliably measured. Revenue arising from the application of the approved tariff charges is recognised when the relevant service is rendered, by applying the relevant authorised tariff. This includes the issuing of licences and permits. For the subsidiary Cape Town International Convention Centre (Pty) Ltd (CTICC), revenue comprises the invoiced value of goods and service sales net of value-added tax, rebates and all discounts. Revenue from exchange transactions Service charges relating to solid waste, sanitation and sewerage are levied in terms of the approved tariffs. Service charges relating to electricity and water are based on consumption. Meters are read on a periodic basis, and revenue is recognised providing that the benefits can be measured reliably. Estimates of consumption are made every other month based on consumption history. Such estimated consumption is recognised as income when invoiced, and adjusted every following month that the meter is read. An accrual on the basis of a determined consumption factor is made for consumption not measured as at the end of the financial year. Services provided on a prepayment basis are recognised at the point of sale. An adjustment for an unutilised portion is made at yearend, based on the average consumption history. Income in respect of housing rental and instalment sale agreements is accrued monthly.

136 INTEGRATED Annual Report | 2013/14 giving rise to the transfer occurred. to transfer the rise giving events the which during period the in expenses as performance of financial statement in the are recognised transfers These • • • not: does Entity the transfers, these making to time. time from When of government sectors other and organisations to individuals, money transfers Entity The GRANTS-IN-AID CT subsidiary The relevantlease. of the term overthe basis astraight-line on is recognised leases operating from income Rental lessor as Entity The Currently, the Entityhas no finance currently. agreements lease lease. the of period straight-linethe over basis on a performance of financial to statement the are charged leases O incurred. when expensed are finance costs Lease rate method. interest effective usingthe repayment, capital the and finance cost lease the between are allocated payments Lease assets. of the lives useful estimated overthe basis straight-line the rates on at appropriate is depreciated assets of the cost The raised. are liabilities the corresponding and equivalent, cash cost their at capitalised are agreements to financelease subject Assets The Entity as lessee LEASES (Act MFMA in the out set those I to Entity. have the transferred of rewards ownership or risks the D issued. fine is the when recognised is and summonses fines spot from Revenue and summonses. fines spot both constitute Fines revenue. from are deducted and of ratepayers, categories are granted to Rebates certain is used. rate charging tariffs, different rating system, A composite rate interest applicable. effective and receivable reference amount to principal with the basis proportionate enforceable. are legally such amounts when are recognised charges Collection notified. duly have been ratepayers and to thisrevenuearises entitlement legal the when rates from is recognised Revenue Revenue from transactions non-exchange • • • • • satisfied: have been conditions following all the when is recognised of goods sale the from Revenue agreement. agency of in the terms is recognised The income I D • • I insurance the fund or reserve. development housing t I f NO nc nc nt which basis, time-proportionate on a performance of financial statement in the is recognised investments on earned nterest akes into account the effective yield on the investment. investment. the on yield akes into account effective the

o iv on pe erest earned on the following investments is not recognised in the statement of financial performance: of financial statement in the isrecognised not investments following the on earned erest ome from the recovery of unauthorised, irregular, fruitless and wasteful expenditure is based on legislated procedures, including including procedures, legislated on is based irregular, expenditure wasteful of and unauthorised, fruitless recovery the from ome I ome for agency services is recognised on a monthly basis once the income collected on behalf of agents is earned. is earned. of agents behalf on collected income the once basis a monthly on is recognised services for agency ome re Th Th Th Th to funder. the is payable that interest indicate grant conditions ex ex P sold. goods control overthe I I idends are recognised when the Entity’s right to receive payment is established. payment right to Entity’s receive the when are recognised idends CC a r nt nt re ations are recognised on a cash receipt basis or, where the donation is in the form of property, plant and equipment, when when plant equipment, and or, basis of form receipt property, is in the acash on donation the are where recognised ations rating leases are those leases that do not fall within the scope of the above definition. definition. above of the scope fall not the that do within leases are those rating leases ceive any goods or services directly in return as would be expected in a purchase or sale transaction; sale in or apurchase expected be inwould returnas directly services or anyceive goods

pect a financial return, as would be expected from an from investment. expected be afinancial return,would as pect in future; repaid to be or pect e costs incurred or to be incurred in respect of the transaction can be reliably measured. reliably be can transaction of the in respect incurred to or be incurred e costs measured. reliably be ofe amount revenuecan effective nor ownership, with usually associated to degree continuing involvement the managerial neither retains e Entity goods. the of ownership and of rewards risks significant the to buyer the has transferred e Entity erest earned on unutilised conditional grants is allocated directly to the creditor ‘ to creditor the directly is allocated grants conditional unutilised on earned erest to fund. the directly fundsis allocated trust on earned erest t paid electricity sold is only recognised as income once the related units are consumed. units related the once income as recognised is only sold electricity paid TES T h ccounts for rental received from such leases as a percentage of turnover, accrues. it apercentage as it as recognises such from leases and received forccounts rental e

year O

e nd T e H d 30Jun E C N o. 56 of 2003), and is recognised upon the recovery thereof from the responsible party. responsible the from thereof recovery the of 2003),56 upon is recognised and ON e 2014(continued) S O L ID ATE I nt erest may be transferred from the accumulated from the surplus to transferred the may be erest D D INTEGRATED A INTEGRATED on F ations are measured at fair are measured value.ations IN A N I nt nn erest on unpaid rates is recognised on atime- on rates is recognised unpaid on erest C u a I l R AL STATEME e po U nu rt P tilised conditional grants’, conditional tilised the if |2 ay ments made under operating operating under made ments 013/14 N TS

137

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) FINANCIAL INSTRUMENTS Financial instruments are recognised when the Entity becomes a party to the contractual provisions of the instrument, and are initially measured at fair value. In the case of a financial instrument not subsequently measured at fair value through the statement of financial performance, transaction costs that are directly attributable to the acquisition or issue of the instrument are added to, or deducted from, the fair value, as appropriate on initial recognition. Financial assets The classification of financial assets depends on their nature and purpose, and is determined at the time of initial recognition. • Investments at fair value Non-derivative investments held without the positive intent or ability to hold to maturity. Subsequent to initial recognition, all changes to fair value are recognised through the statement of financial performance. • Investments at amortised cost Non-derivative investments with fixed or determinable payments and fixed maturity dates, which the Entity has the positive intent and ability to hold to maturity. Subsequent to initial recognition, such investments are measured at amortised cost using the effective interest method less any impairment. • Investments at cost Residual interests that do not have a quoted market price in an active market, and the fair value of which cannot be reliably measured. Subsequent to initial recognition, such investments are measured at cost, less any impairment. Financial assets other than those at fair value are assessed for indicators of impairment at the end of each reporting period. Impairment is considered when there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows of the investment have been affected. Financial assets are derecognised when the rights to receive cash flows from the assets have expired or have been transferred and the Entity has transferred substantially all risks and rewards of ownership, or when the enterprise loses control of contractual rights that comprise the assets. Financial liabilities After initial recognition, the Entity measures all financial liabilities, including payables, at amortised cost, using the effective interest rate method. Financial liabilities include borrowings, other non-current liabilities (excluding provisions) and payables (excluding provisions). Interest-bearing external loans and bank overdrafts are recorded net of direct issue costs. Finance charges, including premiums payable, are accounted for on an accrual basis. Financial liabilities are derecognised when the obligation specified in the contract is discharged or cancelled or when it expires.

PAYABLES Payables are initially measured at fair value, and are subsequently measured at amortised cost, using the effective interest rate method.

RECEIVABLES Receivables are recognised initially at fair value, which approximates amortised cost, less provision for impairment. Bad debts are written off during the year in which they are identified as irrecoverable, subject to the approval by the appropriate delegated authority. Amounts receivable within 12 months from the date of reporting are classified as current. A provision for impairment of receivables is established when there is objective evidence that the Entity will not be able to collect all amounts due according to the original terms of receivables. The amount of the provision is the difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted at the effective interest rate. Interest is charged on overdue amounts. An estimate is made for doubtful debt based on past default experience of all outstanding amounts at yearend.

UNAUTHORISED EXPENDITURE Unauthorised expenditure is expenditure that has not been budgeted for; expenditure that is not in terms of the conditions of an allocation received from another sphere of government, municipality or organ of state, or expenditure in the form of a grant that is not permitted in terms of the MFMA (Act No.56 of 2003). Unauthorised expenditure is accounted for in the financial statements and, where recovered, is subsequently accounted for as revenue in the same statement.

138 INTEGRATED Annual Report | 2013/14 Manager,City Mayor, Executive members, Committee Mayoral councillors, the comprises and party, arelated as is regarded Management the over influence Entity,vice versa. or jointly, or to significant control individually exercise or ability the with entity an or aperson as party arelated regards Entity The RELATED PARTIES statements. to financial notes the affected in the out as set results, of meaningful comparison more and afford a proper to necessary as restated or Comparativeare reclassified figures COMPARATIVE INFORMATION statements. anote inas to financial kind the of services classes of major nature the type and discloses separately but assets, revenueor inas kind services recognise not does Entity The SERVICES IN KIND are applied. borrowings the of how regardless are incurred, they which during period the in performance of financial statement in the are expensed Entity by thatthe are incurred costs Borrowing COSTS BORROWING simultaneously. liability the settle and asset to the or realise basis anet on isintention an to there and settle amount, recognised the enforceable right to offset legally is a there when position of financial statement in the reported amount net the and are offset liabilities and Financial assets OFFSETTING of the part as public the with consultation by year,the beginningapproved during and boththe of at note 49.1.arethose Council figures period a following These in as listed and all entities municipal theare for Entity statements accounted figures financial the annualin for budget The statements. to annual notes the in financial the are provided material differences on comments Explanatory amounts. actual and budget of of comparison statement the called statement, financial additional July 1 from 2013period fiscal the covers separate June as a 30 budget 2014.to approved scheduled are The amounts The statements. financial by Council of these adopted preparation for the accounting the policies with GRA the accordance with in prepared been have figures annual budget The INFORMATIONBUDGET arise. they duringwhich period in the expenses or income as are recognised period, during the recorded initially were they at which those from rates different at of creditors reporting from or of creditors, settlement the from arising rate thatexchange differences date. on Exchange the date applying by position of financial statement at the are reported in foreign currency denominated creditors Trade accounted are initially datetransaction. Transactions ruling for of rate in the at foreignthe currencies on of exchange TRANSACTIONS FOREIGN-CURRENCY accounted for revenue. as is subsequently recovered, where and, is accountedstatements for financial in the expenditure wasteful and Fruitless exercised. been care reasonable had avoided in vain, have would made that and been was is expenditure expenditure wasteful and Fruitless WASTEFUL EXPENDITURE AND FRUITLESS I IRREGULAR EXPENDITURE f NO I where recovered, is subsequently accounted for revenue. as recovered,is subsequently where policy. chain management supply of Remuneration and 2000), rregular expenditure is expenditure that is contrary to the MFMA (Act (Act to MFMA the that is contrary is expenditure expenditure rregular rr o egular expenditure excludes unauthorised expenditure. expenditure. unauthorised excludes expenditure egular r

t TES T h e

year D ep O

uty City Manager and executive directors. executive and Manager City uty e nd T e H d 30Jun E C P ub lic lic ON O e ffi 2014(continued) ce Bearers Act (Act (Act Act ce Bearers S I nt O egrated egrated L ID D ATE ev elopment elopment I rr egular expenditure is accounted in the financial statements and, statements is accounted financial in the expenditure egular N o. D 20 of 1998), that is in or contravention municipality’s of the INTEGRATED A INTEGRATED F P la IN n ( N o. ID A 56 of 2003), Municipal Systems Act (Act (Act of 2003),56 Act Systems Municipal P P s ) pr N tandards on an accrual basis, and are consistent and accrual an basis, on tandards nn ocess. C u a I l R AL STATEME e po rt |2 013/14 N TS N o.

32 of 139

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 1. PROPERTY, PLANT AND EQUIPMENT Economic entity Opening Transfers/ Carrying balance adjustments Additions Disposals Depreciation Impairment value R’000 R’000 R’000 R’000 R’000 R’000 R’000 As at 30 June 2014 Land and buildings 1 844 695 164 821 232 396 (1 366) (44 334) (65 248) 2 130 964 Infrastructure 15 066 383 (397 950) 2 842 989 – (681 472) – 16 829 950 Community 6 043 963 224 568 296 944 – (286 223) – 6 279 252 Other 4 019 897 (1 101 072) 931 969 (3 947) (588 053) (76) 3 258 718 Service concession – 878 098 73 670 – (73 356) – 878 412 Housing rental stock 1 017 667 227 456 177 573 (643) (48 938) – 1 373 115 TOTAL 27 992 605 (4 079) 4 555 541 (5 956) (1 722 376) (65 324) 30 750 411 (See Appendix B for more details)

As at 30 June 2013 Land and buildings 1 672 539 94 755 125 777 (57) (41 215) (7 104) 1 844 695 Infrastructure 13 428 939 (405 083) 2 754 460 – (711 933) – 15 066 383 Community 5 676 045 215 534 413 260 (7) (260 863) (6) 6 043 963 Other 2 714 889 351 1 863 139 (6 383) (552 099) – 4 019 897 Housing rental stock 907 174 89 493 68 433 (274) (47 159) – 1 017 667 TOTAL 24 399 586 (4 950) 5 225 069 (6 721) (1 613 269) (7 110) 27 992 605

Municipality of Cape Town Opening Transfers/ Carrying balance adjustments Additions Disposals Depreciation Impairment value R’000 R’000 R’000 R’000 R’000 R’000 R’000 As at 30 June 2014 Land and buildings 1 709 798 164 832 220 500 (891) (31 392) (65 248) 1 997 599 Infrastructure 15 066 383 (397 950) 2 842 989 – (681 472) – 16 829 950 Community 6 043 963 224 568 296 944 – (286 223) – 6 279 252 Other 3 962 959 (1 101 072) 901 215 (3 913) (578 583) (76) 3 180 530 Service concession – 878 098 73 670 – (73 356) – 878 412 Housing rental stock 1 017 667 227 456 177 573 (643) (48 938) – 1 373 115 TOTAL 27 800 770 (4 068) 4 512 891 (5 447) (1 699 964) (65 324) 30 538 858 (See Appendix B for more details)

As at 30 June 2013 Land and buildings 1 532 488 94 755 117 273 – (27 614) (7 104) 1 709 798 Infrastructure 13 428 939 (405 083) 2 754 460 – (711 933) – 15 066 383 Community 5 676 045 215 534 413 260 (7) (260 863) (6) 6 043 963 Other 2 672 611 351 1 839 945 (5 926) (544 022) – 3 962 959 Housing rental stock 907 174 89 493 68 433 (274) (47 159) – 1 017 667 TOTAL 24 217 257 (4 950) 5 193 371 (6 207) (1 591 591) (7 110) 27 800 770

Provision has been made for the estimated cost of rehabilitating waste sites, included in other assets, as described in note 12. The Entity is required to measure the residual value of all items of property, plant and equipment. Management has determined that none of its infrastructural assets has any active market value, and the value of the amount at the end of their lives would therefore be nil or insignificant.D uring the financial year under review, the Entity reviewed the estimated useful lives and residual values of property, plant and equipment, where appropriate (see note 46.3). Fully depreciated assets at an original cost of R669,82 million (2013: R806,31 million) are still in use.

140 INTEGRATED Annual Report | 2013/14 f NO o r

(f) (e) (d) R119,13 million of impairment. in anil has resulted reversal This building at fordate of the calculation. established was of value fair the of value R149 current carrying The of value-in-use, determined. calculation was million the on Based (c) (a) (b) TOTAL Kitchen andcatering Building Auditorium seating Air-conditioning system Cold rooms I Impairment consideration – assets CTICC for cash-generating 2013The note of 46). amount R27,99 comparative (see billion R28,62 from restated has been billion agreements. signed the of thatpart form annexes and schedules operator-specific the per as are determined rendered forservices the fees the and have to perform, operators that the nature, services control of over the the timing extent and followed. be will process of 12 tender a new which initial period after years, are for an agreements The services. MyCiti the of rendering purposes for City the by the purchased (and depots) related Elevators the following: has confirmed Management of impairment. indicators for possible period duringthe assessed were assets non-current of assets, transit or I Escalators unit Cash-generating P recovered. be not of will land cost the where housing, that are earmarked for purchases low-cost land from mainly arise R21,20 is assets amount of impaired recoverable The million (2013: or value-in-use. R3,91flows million). future cash of generate that that land will percentage of the estimate an on is land based of impaired value-in-use The n li n Au t ro TES T

vision has been made for the integrated for transit ( the rapid made has been vision ne with the Entity’s accounting policy for property, plant and equipment and the GRA the and plant equipment and for property, accounting Entity’s the policy with ne e N A di value. disposal the for measuring basis reliable no sectors. business or entities for other any generates it centrevalue the excludes itself, and within generated D future. foreseeable for the of to performance thislevel maintain are forecast and exceeded been consistently Si adjusted by 5,5% for uncertainty regarding the timing and extent of certain of the cash flows. cash of the of certain extent timing and by the 5,5% regarding adjusted for uncertainty recoverable.be may value not building’s the whether carrying to determine used centre of the has been such,as value-in-use the and, awilling seller and awilling buyer between transaction arm’s-length an through determined be centrethe can Th D gust 2013, the City entered into long-term agreements with three operators to run a high-quality bus-based urban urban bus-based to 2013, ahigh-quality run gust operators three with agreements entered into City the long-term

year ue t ue es o va nce inception, all initial targets for the region (spin-offs) and the operation of the Convention of the Centre operation the and have (spin-offs) region for the all initialnce targets inception, e main purpose of establishing the centre was to generate spin-off returns region. for the centre spin-off to the was generate of establishing e main purpose pite this, the value-in-use of the centre can only be attributed to the present value of the future cash flows flows future value of the cash to present the attributed be only centre of the can value-in-use the this, pite scount rate of 13,9% (2013: 10,7%) risk-free using the calculated was which rate used, was R186 of the of 8,4% I RT s RT o the restrictions imposed on the use of the facility and site, no active market exists within which the value of value the which within market exists site, and active facility no of the use the on imposed restrictions o the lue could be attached to the centre at the end of its useful life due to its disposal being highly unlikely, highly being disposal lifewith to useful due its of to centre its end the at the attached couldlue be O

ystem, known as MyCiti. as known ystem, e nd T e H d 30Jun E C ON e 2014(continued) S I n te O rms of these agreements, the City has made available to the operators busses busses to operators available the has made City the agreements, of these rms L ID ATE I RT D ) taxi association compensation, as described in note 14. described as compensation, association ) taxi INTEGRATED A INTEGRATED F IN A N nn C I n t u a I erms of the agreements, the City has full City the agreements, of the erms l R AL STATEME e po rt |2 P S 013/14 tandard for the impairment impairment for the tandard 1 2 125033 119 129 45197144 94 551 31015044 13 140 5 4500 4 551 8 1225 1 082 9 3313 2 790 5 2677 2 354 R’000 2014 6 1130 661 I mp N airment losses losses airment TS R’000 2013

141

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 2. HERITAGE ASSETS Economic entity Opening Transfers/ Carrying balance adjustments Additions Disposals value R’000 R’000 R’000 R’000 R’000 As at 30 June 2014 Assets under construction 330 (330) – – – Paintings and art galleries 9 081 – 37 (7) 9 111 TOTAL 9 411 (330) 37 (7) 9 111 (See Appendix B for more details) As at 30 June 2013 Assets under construction 3 634 (3 634) 330 – 330 Paintings and art galleries 9 108 (27) – – 9 081 TOTAL 12 742 (3 661) 330 – 9 411 Municipality of Cape Town Opening Transfers/ Carrying balance adjustments Additions Disposals value R’000 R’000 R’000 R’000 R’000 As at 30 June 2014 Assets under construction 330 (330) – – – Paintings and art galleries 9 081 – 37 (7) 9 111 TOTAL 9 411 (330) 37 (7) 9 111 (See Appendix B for more details) As at 30 June 2013 Assets under construction 3 634 (3 634) 330 – 330 Paintings and art galleries 9 108 (27) – – 9 081 TOTAL 12 742 (3 661) 330 – 9 411 Heritage assets are held at cost, as it is impractical to determine their fair value.

3. INVESTMENT PROPERTY Economic entity Opening Transfers/ Carrying balance adjustments Additions Depreciation value R’000 R’000 R’000 R’000 R’000 As at 30 June 2014 Vacant land 148 574 – – – 148 574 Land and buildings 43 371 545 – (1 641) 42 275 TOTAL 191 945 545 – (1 641) 190 849 (See Appendix B for more details) As at 30 June 2013 Vacant land 147 498 – 1 076 – 148 574 Land and buildings 44 980 20 – (1 629) 43 371 TOTAL 192 478 20 1 076 (1 629) 191 945 Municipality of Cape Town Opening Transfers/ Carrying balance adjustments Additions Depreciation value R’000 R’000 R’000 R’000 R’000 As at 30 June 2014 Vacant land 148 574 – – – 148 574 Land and buildings 43 371 545 – (1 641) 42 275 TOTAL 191 945 545 – (1 641) 190 849 (See Appendix B for more details) As at 30 June 2013 Vacant land 147 498 – 1 076 – 148 574 Land and buildings 44 980 20 – (1 629) 43 371 TOTAL 192 478 20 1 076 (1 629) 191 945

142 INTEGRATED Annual Report | 2013/14 4. f NO o

TOTAL TOTAL The 2013The of amount R756,61 comparative R125,50 from restated has been million note 46). (see million Computer software Computer software Assets underconstruction As at30June2013 (See AppendixBformore details) Assets underconstruction As at30June2013 (See AppendixBformore details) TOTAL TOTAL Computer software Computer software Acquisition ofrights Acquisition ofrights Assets underconstruction As at30June2014 Assets underconstruction As at30June2014 INTANGIBLE ASSETS t TES T h e

year O

e nd T e H d 30Jun E C ON e 2014(continued) S O L ID ATE 100 432 100 432 100 0 3 7 540(705 125 500 (27055) 45450 6673 100 432 125 500 (27055) 45450 6673 100 432 5 0 1 272(065 729507 (50665) 22752 811 756 609 729507 (50665) 22752 811 756 609 2 0 1 272(066 98 398 (30646) 22752 811 125 500 98398 (30646) 22752 811 125 500 3 0 (414389) 631 109 (414389) 631 109 Opening Opening balance balance R’000 R’000 D – – 414389 – 414389 – INTEGRATED A INTEGRATED F adjustments adjustments IN Transfers/ Transfers/ M 6 673 6 673 6 unicipality A R’000 R’000 N E 631109 – 631109 – conomic nn C u a I Additions Additions l R AL STATEME 676 559 676 559 e

of po R’000 R’000

entity C rt 2 1)414389 (20019) – 414389 (20019) – ape – – |2 Amortisation Amortisation 013/14 T own (27 055) (27 055) (27 R’000 R’000 631109 – 631109 – 216720 – 216720 – N TS 756 609 756 609 Carrying Carrying R’000 value R’000 value

143

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 5. INVESTMENTS Economic entity Amortised cost Fair value Cost Total R’000 R’000 R’000 R’000 As at 30 June 2014 RSA Government stock 69 820 – – 69 820 Sinking-fund deposits – see note 11 and 40 1 631 750 – – 1 631 750 Other fixed deposits 1 074 572 – – 1 074 572 Deposits held with fund managers – 5 314 123 – 5 314 123 2 776 142 5 314 123 – 8 090 265 Provision for impairment (5 328) – – (5 328) Net investments 2 770 814 5 314 123 – 8 084 937 Current portion transferred to short-term investments (39 556) (2 582 350) – (2 621 906) Current portion transferred to cash and cash equivalents – see note 10 (1 069 173) (1 337 585) – (2 406 758) TOTAL 1 662 085 1 394 188 – 3 056 273

Investments detailed as follows: Balance at the beginning of the year 3 725 749 4 534 245 – 8 259 994 Capital invested 24 406 980 1 500 000 – 25 906 980 Investments matured (25 505 263) (1 050 000) – (26 555 263) Recognised in the statement of financial performance 143 348 329 878 – 473 226 Finance income 143 348 340 595 – 483 943 Losses on valuation of investments – (2 865) – (2 865) Transaction cost – (7 852) – (7 852)

Balance at the end of the year 2 770 814 5 314 123 – 8 084 937

Economic entity Amortised cost Fair value Cost Total R’000 R’000 R’000 R’000 As at 30 June 2013 RSA Government stock 60 746 – – 60 746 Sinking-fund deposits – see note 11 and 40 80 157 820 718 – 900 875 Other fixed deposits 3 590 174 – – 3 590 174 Deposits held with fund managers – 3 713 527 – 3 713 527 3 731 077 4 534 245 – 8 265 322 Provision for impairment (5 328) – – (5 328) Net investments 3 725 749 4 534 245 – 8 259 994 Current portion transferred to short-term investments (6 315) (3 424 479) – (3 430 794) Current portion transferred to cash and cash equivalents – see note 11 (3 584 777) (1 109 766) – (4 694 543) TOTAL 134 657 – – 134 657

Investments detailed as follows: Balance at the beginning of the year 1 720 142 4 595 400 – 6 315 542 Capital invested 23 176 126 2 100 000 – 25 276 126 Investments matured (21 299 503) (2 450 000) – (23 749 503) Recognised in the statement of financial performance 128 984 288 845 – 417 829 Finance income 128 984 301 386 – 430 370 Losses on valuation of investments – (7 903) – (7 903) Transaction cost – (4 638) – (4 638)

Balance at the end of the year 3 725 749 4 534 245 – 8 259 994

144 INTEGRATED Annual Report | 2013/14 5. f NO o

Balance atthe endoftheyear Balance attheendofyear Recognised inthestatementof financialperformance Recognised inthestatementoffinancialperformance I I Capital invested Capital invested Balance atthebeginningofyear Investments detailedasfollows: Balance atthebeginningofyear Investments detailedasfollows: TOTAL TOTAL – seenote10 Current portiontransferred tocashandequivalents – seenote10 Current portiontransferred tocashandequivalents Current portiontransferred toshort-terminvestments Current portiontransferred toshort-terminvestments Net investments Net investments P P Shares inCT Shares inCT D D O O Sinking-fund deposits–seenote11and40 Sinking-fund deposits–seenote11and40 RSA Government stock RSA Government As at30June2013 stock RSA Government As at30June2014 INVESTMENTS nvestments matur nvestments matur t r r eposits heldwithfundmanagers eposits heldwithfundmanagers ther fixeddeposits ther fixeddeposits TES T ovision forimpairment ovision forimpairment Transaction cost Transaction cost h Loss onvaluationofinvestments Loss onvaluationofinvestments Finance income Finance income e

year I I O CC CC

e nd T ed ed e (continued) H d 30Jun E C ON e 2014(continued) S O L ID ATE D INTEGRATED A INTEGRATED F 2 8 1)(2450 000) (20 888712) (1050000) (24 675000) 279852100000 22 739895 25030360 150000 1500000 23 380360 34301 (1109766) (3 433001) 7 7 3 4 8788146986 38768 4534245 3 573973 2 8 1 2 8 6 7925572 188768 5314123 2 422681 9 0 9 0 8786227974 38768 4595400 1 593806 8146986 38768 4534245 3 573973 6 8 9 8 8 6 3245041 188768 1394188 1 662085 7 7 3 4 8788146986 38768 4534245 3 573973 7925572 188768 5314123 2 422681 7 0 3 4 8 0 8397546 284000 4534245 3 579301 8176132 434000 5314123 2 428009 3 438398 1 631750 Amortised Amortised IN 134657 2 8 301386 128984 7100 (1337585) (721 040) 2 8 288845 128 984 329878 143 348 726 439 60746 4 4 340595 143 348 3 5)(2582350) (39 556) 017820718 80 157 69 820 635 (3424479) (6 315) (5 328) (5 328) A R’000 R’000 cost cost N – – – – (4638) – (7852) – (7903) – (2865) – M M nn C unicipality unicipality u a 3 713527 5 314123 I Fair value Fair value l R AL STATEME e po R’000 R’000 rt 878173425 38768 – 2522 (250560) (245232) – (250560) (245232) – – – – – – – – |2

of of 013/14 C C 8 0 284000 284000 ape ape 3 0 434000 434 000 R’000 R’000 Cost Cost T T own own (4638) – (7852) – (7903) – (2865) – 430370 – 483943 – 417829 – 473226 – (23338712) – (25725000) – 24839895 – (4542767) – (2058625) – (3430794) – (2621906) – 3713527 – 5314123 – – – 1631750 – 900875 – 69820 – 60746 – N 3 438398 TS 726 439 R’000 R’000 Total Total

145

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 5. INVESTMENTS (continued) Collateral deposits for staff housing loans Included in other fixed deposits are fixed deposits with a carrying value of R0,48 million (2013: R0,48 million), which were pledged as security deposits for securing staff home loans with financial institutions. These pledges are repaid as soon as the employees’ outstanding home loan balance is below 80% of the approved loan amount. The Entity has not issued fixed deposits as security since 2000, however, interest earned on certain deposits is still being capitalised. The Entity’s exposure to risk is minimised by an assurance policy taken out by the employee and ceded to the Entity to cover the guaranteed deposit. Compensation for occupational injuries and diseases (COID investments) The RSA Government stock (bonds) was purchased at the request of the Department of Labour in terms of the COID Act, (Act No.130 of 1993). The Compensation Commissioner is required to hold the physical scrip as security for the City’s liabilities under the Act.

6. LONG-TERM RECEIVABLES Municipality of Economic entity Cape Town 2014 2013 2014 2013 R’000 R’000 R’000 R’000 Sporting bodies 897 1 033 897 1 033 Housing land sales 868 947 868 947 2 860 2 992 2 860 2 992 Public organisations 6 075 7 672 6 075 7 672 Provision for impairment (3 215) (4 680) (3 215) (4 680) 119 337 117 239 119 337 117 239 Housing selling developments 131 806 155 944 131 806 155 944 Provision for impairment (12 469) (38 705) (12 469) (38 705)

123 962 122 211 123 962 122 211 Current portion transferred to current receivables (19 650) (20 546) (19 650) (20 546) TOTAL 104 312 101 665 104 312 101 665

Reconciliation of impairment provision Balance at beginning of the year 43 385 82 481 43 385 82 481 Contributions from provisions (27 701) (39 096) (27 701) (39 096) Balance as at 30 June 15 684 43 385 15 684 43 385

Sporting bodies To facilitate the development of sporting facilities, loans were made to provide the necessary financial assistance. These loans attract interest at a rate of 4% to 19% per annum, and are repayable over a maximum period of 20 – 40 years. Housing land sale The long-term loan to the Khayelitsha Community Trust (KCT) (sale of portion 1 to 3, erf 58856) is repayable over 18 years. Annual payments are received, with the final payment due in 2024. Public organisations Loans to public organisations are granted in terms of the National Housing Policy. At present, these loans attract interest at 1% and are repayable over 30 years. With the implementation of new legislation (the MFMA and the Housing Act), no further loans have been awarded, and the final loan repayments are scheduled for 2032. Examples of public organisations that were granted loans are the National War Memorial and the Alta du Toit School. Housing selling development loans Housing loans were historically granted to qualifying individuals in terms of the National Housing Policy. These loans currently attract interest at 8,5% per annum, and are repayable over 20 years. The interest rate is determined by Council policy.

146 INTEGRATED Annual Report | 2013/14 8. 7. f NO o

(2013: R106,37 million) owed by 2014, June at 30 R143,02 of amount approximately an As included balance City’s the receivables million TOTAL O Rates debtors transactions From non-exchange O the incorrect report parameters used to extract the information). the to extract used parameters report incorrect the (2013: to due errors R870,76from revealed R881,64 data restated issues million stores year prior of the million. Areview capitalised. was to amounted year R995,52 aportion duringthe million, of which issues stores as that recognised were I TOTAL H in excess of the present allowance for doubtful debts. for allowance doubtful present of the in excess are required provisions credit unrelated. and Accordingly, is large further no base believes customer the as management is limited, risk date.of concentration credit The granted, initially was to up reporting credit the the which date on the from I O Balance asat30June Water H Bad debtswrittenoff Spare partsandmeters Transfers from provisions Medical supplies Service debtors Contributions toprovisions Consumable stores From exchangetransactions Balance atbeginningoftheyear Reconciliation ofimpairmentprovision RECEIVABLES INVENTORY nv n de t ousing sellingstock ousing r ther non-exchangedebtors ther exchangedebtors ther goodsheldforr TES T h entory toof(2013: value R3,27million the entory year. 263) duringthe R803 scrapped was e termining the recoverability of a receivable, the Entity considers any change in the credit quality of the receivable receivable of the quality credit any in the change considers Entity the of areceivable, recoverability termining the

year ental stock O

e nd T e H d 30Jun esale E C ON e N 2014(continued) at 3 2 42097 0 5 1 1 40502 4170933 (4045082) 8216015 4308354 (4230967) 8 539321 3 7 7753 4 1 8 6 8889 1177132 (808829) 1985961 1244118 (787553) 2 031671 0 5 34344 6 3 3 5 32623 2993801 (3236253) 6230054 3 064236 (3443414) 6 507650 0 1 7123 2 4 5 0 8028 1154268 (800238) 1954506 1221448 (781263) 2 002711 7 7 28494 1 8 7 8 25891 2621823 (2548961) 5170784 2717988 (2854984) 5 572972 ional and and ional 214 881 175 969 4 2 4302 0864763(2 3)66165 (421438) 487603 70806 (473022) 543 828 S balance 890( 9)2 7 145( 9)22864 (8591) 31455 22670 (6290) 28 960 Gross R’000 O L As at30June2014 ID P ro impairment vincial Government. vincial ATE 1601 9983746(6 8)96387 (261089) 357476 69938 (106 031) Provision 937 0 0 1 9 475 209426 (4765) 214191 205504 (9 377) R’000 for D INTEGRATED A INTEGRATED F IN E E 7 5 5 7 6 8 256550 269283 257670 270 351 1 9 1 7 1 3 210755 217730 211875 218 798 conomic balance conomic 0271 8 02713687 10297 13687 10 297 9691 9 96912792 19649 12792 19 649 1331 3 13318530 21313 18530 21 313 A R’000 R’000 2014 9 8 9 786 294 786 294 Net N nn C u

a entity entity I l R AL STATEME balance e po Gross R’000 R’000 2013 rt I nv |2 As at30June2013 entories (excludingentories bulk water) 013/14 impairment 3 6 4045082 4 230967 4 8 4181256 4 045082 Provision 5485 (1004470) (574 825) 6 6 885350 766 563 M 583 (17054) (5 853) unicip R’000 R’000 C R’000 2014 2014 ape for T ality N own TS balance

of R’000 R’000 R’000

2013 2013 Net 147

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 8. RECEIVABLES (continued) Economic entity Analysis of receivables’ age in days As at 30 June 2014 As at 30 June 2013 Allowance Allowance Gross for Net Gross for Net balance impairment balance balance impairment balance R’000 R’000 R’000 R’000 R’000 R’000 From exchange transactions 6 507 650 (3 443 414) 3 064 236 6 230 054 (3 236 253) 2 993 801

Service debtors 5 572 972 (2 854 984) 2 717 988 5 170 784 (2 548 961) 2 621 823 Electricity 1 303 716 (133 746) 1 169 970 1 321 140 (154 439) 1 166 701 Not due 866 720 – 866 720 896 663 (13 988) 882 675

0 – 30 127 737 – 127 737 119 640 (1 866) 117 774 31 – 60 32 317 – 32 317 40 545 (633) 39 912 61 – 90 21 948 – 21 948 16 945 (264) 16 681 91 – 365 121 248 – 121 248 111 397 (1 738) 109 659 365+ 133 746 (133 746) – 135 950 (135 950) –

Water 2 637 398 (1 728 483) 908 915 2 389 548 (1 533 672) 855 876 Not due 360 859 (63 944) 296 915 354 779 (61 555) 293 224

0 – 30 116 261 (20 601) 95 660 71 395 (12 387) 59 008 31 – 60 70 453 (12 484) 57 969 66 740 (11 579) 55 161 61 – 90 69 382 (12 295) 57 087 73 117 (12 686) 60 431 91 – 365 487 706 (86 422) 401 284 469 512 (81 460) 388 052 365+ 1 532 737 (1 532 737) – 1 354 005 (1 354 005) –

Waste management 439 662 (251 862) 187 800 390 415 (221 209) 169 206 Not due 51 260 (3 224) 48 036 51 520 – 51 520

0 – 30 28 022 (1 762) 26 260 17 550 – 17 550 31 – 60 15 387 (968) 14 419 12 676 – 12 676 61 – 90 14 084 (886) 13 198 12 556 – 12 556 91 – 365 91 652 (5 765) 85 887 74 904 – 74 904 365+ 239 257 (239 257) – 221 209 (221 209) –

Wastewater management 1 192 196 (740 893) 451 303 1 069 681 (639 641) 430 040 Not due 175 050 (24 087) 150 963 171 089 (19 642) 151 447

0 – 30 57 280 (7 882) 49 398 33 296 (3 822) 29 474 31 – 60 35 830 (4 930) 30 900 30 839 (3 540) 27 299 61 – 90 32 182 (4 428) 27 754 34 777 (3 992) 30 785 91 – 365 222 969 (30 681) 192 288 215 810 (24 775) 191 035 365+ 668 885 (668 885) – 583 870 (583 870) –

Housing rental stock 543 828 (473 022) 70 806 487 603 (421 438) 66 165 Not due 44 590 (26 558) 18 032 47 661 (28 702) 18 959

0 – 30 18 058 (10 755) 7 303 15 676 (9 440) 6 236 31 – 60 9 423 (5 612) 3 811 8 155 (4 911) 3 244 61 – 90 9 372 (5 582) 3 790 9 074 (5 464) 3 610 91 – 365 93 645 (55 775) 37 870 85 761 (51 645) 34 116 365+ 368 740 (368 740) – 321 276 (321 276) –

148 INTEGRATED Annual Report | 2013/14 8. f NO o

r only invoiced after year-end. after invoiced only that were billed amounts as well as period, overarenegotiated debt arrears outstanding to their repay arrangements I TOTAL 365+ 91 –365 61 –90 31 –60 0 –30 N debtors Other non-exchange 365+ 91 –365 61 –90 31 –60 0 –30

N Ra F transactions 365+ 91 –365 61 –90 31 –60 0 –30 N te xhnedbos2481( 7)25542411( 6)209426 (4 765) 214191 205504 (9377) 214881 Other exchangedebtors 365+ 91 –365 61 –90 31 –60 0 –30 N Housing sellingstock RECEIVABLES nc t rom ot due ot due ot due ot due TES T h tes debtors tes luded in the column in “ the luded e

year

non - O exchange

e nd T (continued) e H d 30Jun E C N

ot du ON e” are debtors to the value of R698,80 million (2013: million e” toof value R698,80 the are debtors R642,62 million), have made who e 2014(continued) 3 2 42097 0 5 1 1 40502 4170933 (4045082) 8216015 4 308354 (4230967) 8 539321 0 1 7123 2 4 5 0 8028 1154268 (800238) 1954506 1221448 (781263) 2 002711 3 7 7753 4 1 8 6 8889 1177132 (808829) 1985961 1244118 (787553) 2 031671 7 3 (776230) 776 230 7 2 115 7 9 3 2 880 330795 (8830) 339625 273196 (1125) 274 321 839 350 7 6 1601 9983746(6 8)96387 (261089) 357476 69938 (106031) 175 969 196 113 S balance 890( 9)2 7 3 5 851 22864 (8 591) 31455 22 670 (6290) 28 960 13 836 531(4)3 5 294( 3)61337 (1637) 62974 35156 (145) 35 301 431(4)3 6 558( 0)63863 (1705) 65568 34161 (140) 34 301 328(7)4 3 1 3)44(15909) 424 (16333) 43031 (177) 43 208 883(98843) 98 843 984( 9)2 3 526( 7)26578 (8678) 35256 27033 (2791) 29 824 780( 3)1 4 8 104 3379 (1004) 4383 16243 (1637) 17 880 28 334 9 (6 290) 6 290 3 370 4 093 8 (7886) 7 886 1 206 2 2)289(126 4 (28200) 3046 (31246) 2899 (21) 2 920 8 4)926(322 220 (21012) 2270 (23282) 9236 (45) 6 281 9 13 8 6 (1)1552 (514) 2066 987 (103) 1 090 Gross R’000 O 604 767 475 (2) L As at30June2014 ID impairment Allowance ATE 346 3 0 3 8 1 9)714182 (19098) 733280 835904 (3 446) 142 9 0 2 4 3 6)290287 (31361) 321648 194701 (1 412) 267 567 231 2 8)61965 (20386) 82 351 25677 (2 657) A R’000 nal for 9 9 2 8) 1 (22368) 2416 (24784) 1197 (9) 4 7 1 8) 0 (9281) 1003 (10284) 471 (4) D 7 9 (7)4421 (478) 4899 3370 – 0 9 (2)1171 (127) 1298 604 – 6 1 (3)1277 (138) 1415 767 – 9 4 (1)2030 (219) 2249 4093 – – – ysis INTEGRATED A INTEGRATED F

IN of E conomic balance 386 544( 0)13965 (1509) 15474 13 836

receiv A R’000 Net N 2 7 (6)2913 (961) 3874 (2) 2 (6120) 6120 – 6 9 (769392) 769392 – 1 6)17861 (17861) – 2 4 (229546) 229546 – nn C ables u

a entity I l R AL STATEME balance e ’ po Gross R’000 age rt |2

As at30June2013 in 013/14

da impairment Allowance ys R’000 for N TS balance R’000

Net – – – – 149

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 8. RECEIVABLES (continued) Municipality of Cape Town As at 30 June 2014 As at 30 June 2013 Allowance Allowance Gross for Net Gross for Net balance impairment balance balance impairment balance R’000 R’000 R’000 R’000 R’000 R’000 From exchange transactions 6 507 650 (3 443 414) 3 064 236 6 230 054 (3 236 253) 2 993 801 Service debtors 5 572 972 (2 854 984) 2 717 988 5 170 784 (2 548 961) 2 621 823 Housing rental stock 543 828 (473 022) 70 806 487 603 (421 438) 66 165 Housing selling stock 175 969 (106 031) 69 938 357 476 (261 089) 96 387 Other exchange debtors 214 881 (9 377) 205 504 214 191 (4 765) 209 426

From non-exchange transactions 2 032 966 (787 553) 1 245 413 1 987 261 (808 829) 1 178 432 Rates debtors 2 004 006 (781 263) 1 222 743 1 955 806 (800 238) 1 155 568 Other non-exchange debtors 28 960 (6 290) 22 670 31 455 (8 591) 22 864

TOTAL 8 540 616 (4 230 967) 4 309 649 8 217 315 (4 045 082) 4 172 233

2014 2013 R’000 R’000 Reconciliation of impairment provision Balance at beginning of the year 4 045 082 4 181 256 Contributions to provisions 766 563 885 350 Transfers from provisions (5 853) (17 054) Bad debts written off (574 825) (1 004 470) Balance as at 30 June 4 230 967 4 045 082

150 INTEGRATED Annual Report | 2013/14 8. f NO o

r 365+ 91 –365 61 –90 31 –60 1 –30 P N Housing rental stock 365+ 91 –365 61 –90 31 –60 1 –30 P N Wastewater management 365+ 91 –365 61 –90 31 –60 1 –30 P N

Waste management 365+ 91 –365 61 –90 31 –60 1 –30 P N Water 365+ 91 –365 61 –90 31 –60 1 –30 P N Electricity Ser transactions F RECEIVABLES t ast due ast due ast due ast due ast due rom ot due ot due ot due ot due ot due TES T h vice debtors e

year

exchange O

e nd T (continued) e

H d 30Jun E C ON e 2014(continued) 9 9 7083 5 0 6 8 (3 4)430040 (639641) 1069681 451303 (740893) 1 192196 3 9 17843 0 1 8 4 ( 3 7)855876 (1533672) 2389548 908915 (1728483) 2 637398 0 1 1376 6 7 2 4 1449 1166701 (154439) 1321140 1169970 (133746) 1 303716 7 7 28494 1 8 7 8 ( 4 6)2621823 (2548961) 5170784 2717988 (2854984) 5 572972 0 5 34344 6 3 3 5 32623 2993801 (3236253) 6230054 3064236 (3443414) 6 507650 3 3 (1532737) 1 532737 4 2 4302 0864763 4148 66165 (421438) 487 603 70806 (473022) 543 828 6 4 (368740) 368 740 3 6 2182 8 0 3045 2129 169206 (221209) 390 415 187800 (251862) 439 662 6 8 (668885) 668 885 2 6 3 8)12282580 2 7)191035 (24775) 215810 192288 (30681) 222 969 175 050 3 5 (239257) 239 257 8 0 8 2)41244952(140 388052 (81460) 469512 401284 (86422) 487 706 116 261 360 859 3 4 (133746) 133 746 121 248 127 737 866 720 S balance 365(575 7808 6 (165 34116 (51645) 85761 37870 (55 775) 93 645 18 058 44 590 212( 2)2 5 477 392 30785 (3 992) 34777 27 754 (4 428) 32 182 580( 3)3 0 089 350 27299 (3 540) 30839 30 900 (4 930) 35 830 57 280 162( 6)8 8 74904 85 887 (5765) 91 652 404(8)1 9 12556 13198 (886) 14 084 537(6)1 1 12676 14419 (968) 15 387 28 022 51 260 932(225 7077 1 1 8)60431 (12686) 73117 57087 (12295) 69 382 043(244 7996 4 (159 55161 (11579) 66740 57969 (12484) 70 453 21 948 32 317 7 552 9 7 ( 6)3610 (5464) 9074 3790 (5582) 9 372 2 562 1 5 ( 1)3244 (4911) 8155 3811 (5612) 9 423 Gross R’000 O L As at30June2014 ID impairment Allowance ATE 1 5)7331 7 ( 4)6 236 (9440) 15 676 7303 (10 755) 2 5)1 3 761 2 0)18959 (28702) 47661 18032 (26 558) 2 8)1093 7 8 (962 151447 (19642) 171089 150963 (24 087) 2 0)9 6 135 1 8)59008 (12387) 71395 95660 (20 601) 6 4)2695 5 7 (155 293224 (61555) 354779 296915 (63 944) 782 9383 9 ( 2)29 474 (3822) 33 296 49398 (7 882) 172 62017550 26260 (1 762) 324 80651520 48036 (3 224) A R’000 nal for D 2 4 1 9 178 109659 (1738) 111397 121248 – 1981 4 24 16681 (264) 16945 21948 – 2374 4 63 39912 (633) 40545 32317 – – – M ysis INTEGRATED A INTEGRATED F unicipality

IN of 2 3 1 4 186 117774 (1866) 119640 127 737 6 2 9 6 (398 882675 (13988) 896663 866 720 balance

receiv A R’000 Net N 2 7 (321 276) 321276 – 8 7 (583870) 583870 – 2 0 (221209) 221209 – 5 0 (1354005) 1354005 – 3 5 (135950) 135950 – nn

C of ables u a C I l R AL STATEME ape balance e ’ po Gross R’000 age T rt own |2

As at30June2013 in 013/14

da impairment Allowance ys R’000 for 74904 – 12556 – 51520 – 12676 – 17550 – N TS balance R’000

Net – – – – – 151

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 8. RECEIVABLES (continued) Municipality of Cape Town Analysis of receivables’ age in days As at 30 June 2014 As at 30 June 2013 Allowance Allowance Gross for Net Gross for Net balance impairment balance balance impairment balance R’000 R’000 R’000 R’000 R’000 R’000 Housing selling stock 175 969 (106 031) 69 938 357 476 (261 089) 96 387 Not due 28 334 (2 657) 25 677 82 351 (20 386) 61 965 Past due 1 – 30 17 880 (1 637) 16 243 4 383 (1 004) 3 379 31 – 60 (2) – (2) 3 874 (961) 2 913 61 – 90 1 090 (103) 987 2 066 (514) 1 552 91 – 365 29 824 (2 791) 27 033 35 256 (8 678) 26 578 365+ 98 843 (98 843) – 229 546 (229 546) –

Other exchange debtors 214 881 (9 377) 205 504 214 191 (4 765) 209 426 Not due 196 113 (1 412) 194 701 321 648 (31 361) 290 287 Past due 1 – 30 6 281 (45) 9 236 (23 282) 2 270 (21 012) 31 – 60 2 920 (21) 2 899 (31 246) 3 046 (28 200) 61 – 90 475 (4) 471 (10 284) 1 003 (9 281) 91 – 365 1 206 (9) 1 197 (24 784) 2 416 (22 368) 365+ 7 886 (7 886) – (17 861) 17 861 –

From non-exchange transactions 2 032 966 (787 553) 1 245 413 1 987 261 (808 829) 1 178 432

Rates debtors 2 004 006 (781 263) 1 222 743 1 955 806 (800 238) 1 155 568 Not due 840 645 (3 446) 837 199 734 580 (19 098) 715 482 Past due 1 – 30 43 208 (177) 43 031 (16 333) 424 (15 909) 31 – 60 34 301 (140) 34 161 65 568 (1 705) 63 863 61 – 90 35 301 (145) 35 156 62 974 (1 637) 61 337 91 – 365 274 321 (1 125) 273 196 339 625 (8 830) 330 795 365+ 776 230 (776 230) – 769 392 (769 392) –

Other non-exchange debtors 28 960 (6 290) 22 670 31 455 (8 591) 22 864 Not due 13 836 – 13 836 15 474 (1 509) 13 965 Past due 1 – 30 4 093 – 4 093 2 249 (219) 2 030 31 – 60 767 – 767 1 415 (138) 1 277 61 – 90 604 – 604 1 298 (127) 1 171 91 – 365 3 370 – 3 370 4 899 (478) 4 421 365+ 6 290 (6 290) – 6 120 (6 120) –

TOTAL 8 540 616 (4 230 967) 4 309 649 8 217 315 (4 045 082) 4 172 233

152 INTEGRATED Annual Report | 2013/14 9. f NO o

The 2013 note 46). The (see million R304,28 from of amount R304,16 comparative restated has been million (SARS). Service Revenue African I TOTAL O Government subsidies Government transactions From non-exchange O receivables from the date on which the credit was initially granted up to the reporting date. granted initially was to up reporting the credit the which date on the from receivables I Balance asat30June P Bad debtswrittenoff Transfer toprovisions P Contributions to/(from) provision From exchangetransactions Balance atbeginningoftheyear Reconciliation ofimpairmentprovision OTHER RECEIVABLES nc n de t r ayments madeinadvance ther non-exchangedebtors ther exchangedebtors TES T operty rentals h luded in ‘ luded e termining the recoverability of other receivables, the Entity considers any change in the credit quality of other of other quality credit any in the change considers Entity the receivables, of other recoverability termining the

year O O

e th nd er exchange debtors’ is an amount of isamount R11,75 an debtors’ exchange er (2013: million million) R24,89 for T e H d 30Jun E C ON e 2014(continued) 2 4 8539 2 8 5 6 5 0)304159 (54606) 358765 427783 (895359) 1 323142 3 8 8816 9 7 154844 298579 (838106) 1 136685 2 0 8816 8 9 47338 186194 (838106) 1 024300 8 5 5 5)19242391(466 149315 (54606) 203921 129204 (57253) 186 457 112 385 104 568 S balance 027(269 7587 3 4 9)29343 (42792) 72135 37558 (42679) 80 237 1 652 Gross R’000 O L As at30June2014 ID impairment ATE Provision 1 7)8 9 2 4 1 1)116829 (11814) 128643 89994 (14 574) R’000 for D 1 8 107506 112385 – – INTEGRATED A INTEGRATED F IN E conomic balance 5 3143 1 652 A R’000 Net N nn C u

a entity I l R AL STATEME balance e po Gross R’000 rt |2 As at30June2013 013/14 impairment Provision 9 5 54606 895 359 834 039 V 46648137 54 606 AT o 216 (463) (2 106) 2 6932 8 820 R’000 R’000 2014 for wed by the South South by the wed 47338 – 107506 – 154844 – 3143 – N TS balance R’000 R’000

2013 Net – 153

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 9. OTHER RECEIVABLES (continued) Economic entity Analysis of receivables’ age in days As at 30 June 2014 As at 30 June 2013 Allowance Allowance Gross for Net Gross for Net balance impairment balance balance impairment balance R’000 R’000 R’000 R’000 R’000 R’000 From exchange transactions 186 457 (57 253) 129 204 203 921 (54 606) 149 315 Payment made in advance 1 652 – 1 652 3 143 – 3 143 Not due 1 652 – 1 652 3 143 – 3 143

Property rentals 80 237 (42 679) 37 558 72 135 (42 792) 29 343 Not due 7 142 (141) 7 001 7 152 – 7 152

0 – 30 22 934 (452) 22 482 16 500 – 16 500 31 – 60 1 361 (27) 1 334 858 – 858 61 – 90 (4 603) 91 (4 512) (2 904) – (2 904) 91 – 365 11 479 (226) 11 253 7 737 – 7 737 365+ 41 924 (41 924) – 42 792 (42 792) –

Other exchange debtors 104 568 (14 574) 89 994 128 643 (11 814) 116 829 Not due 72 578 (63) 72 515 94 595 (110) 94 485

0 – 30 14 112 (1 936) 12 176 14 614 (2 476) 12 138 31 – 60 1 109 (13) 1 096 1 842 (8) 1 834 61 – 90 (1 348) 87 (1 261) 314 (25) 289 91 – 365 5 673 (205) 5 468 8 886 (803) 8 083 365+ 12 444 (12 444) – 8 392 (8 392) –

From non-exchange transactions 1 136 685 (838 106) 298 579 154 844 – 154 844 Government subsidies 112 385 – 112 385 107 506 – 107 506 Not due 112 385 – 112 385 107 506 – 107 506

Other non-exchange debtors 1 024 300 (838 106) 186 194 47 338 – 47 338 Not due 21 519 – 21 519 47 338 – 47 338

0 – 30 47 576 (39 180) 8 396 – – – 31 – 60 56 150 (46 241) 9 909 – – – 61 – 90 54 589 (44 956) 9 633 – – – 91 – 365 448 075 (369 003) 79 072 – – – 365+ 396 391 (338 726) 57 665 – – –

TOTAL 1 323 142 (895 359) 427 783 358 765 (54 606) 304 159

154 INTEGRATED Annual Report | 2013/14 9. f NO o

TOTAL O Government subsidies Government transactions From non-exchange O Balance asat30June P Bad debtswrittenoff Transfers toprovisions P Contributions toprovisions From exchangetransactions Balance atbeginningoftheyear Reconciliation ofimpairmentprovision OTHER RECEIVABLES t r ayments madeinadvance ther non-exchangedebtors ther exchangedebtors TES T operty rentals h e

year O

e nd T e H d 30Jun E C (continued) ON e 2014(continued) 1 5 8340 1 0 4 4 5 4)290496 (52147) 342643 417304 (893450) 1 310754 3 8 8816 9 7 154844 298579 (838106) 1 136685 2 0 8816 8 9 47338 186194 (838106) 1 024300 7 6 5 4)18751779(217 135652 (52147) 187799 118725 (55344) 174 069 112 385 S balance 93 828 027(269 7587 3 4 9)29343 (42792) 72135 37558 (42679) 80 237 Gross R’000 O L 4 As at30June2014 ID impairment Allowance ATE 1 6)8 6 1 6 935 105506 (9355) 114861 81163 (12 665) R’000 for D 1 8 107506 112385 – – M INTEGRATED A INTEGRATED F unicipality IN balance A R’000 Net N 4 nn

C of u a C I l R AL STATEME ape balance e po Gross R’000 T 803 rt own |2 As at30June2013 013/14 impairment Allowance 9 5 52147 893 450 373 452 6 5 6797 469 957 21745799 52 147 216 (449) (2 106) R’000 R’000 2014 for 47338 – 107506 – 154844 – 803 – N TS balance R’000 R’000

2013 Net – 155

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 9. OTHER RECEIVABLES (continued) Municipality of Cape Town As at 30 June 2014 As at 30 June 2013 Allowance Allowance Gross for Net Gross for Net balance impairment balance balance impairment balance R’000 R’000 R’000 R’000 R’000 R’000 From exchange transactions 174 069 (55 344) 118 725 187 799 (52 147) 135 652

Payment made in advance 4 – 4 803 – 803 Not due 4 – 4 803 – 803

Property rentals 80 237 (42 679) 37 558 72 135 (42 792) 29 343 Not due 7 142 (141) 7 001 7 152 – 7 152 Past due 1 – 30 22 934 (452) 22 482 16 500 – 16 500 31 – 60 1 361 (27) 1 334 858 – 858 61 – 90 (4 603) 91 (4 512) (2 904) – (2 904) 91 – 365 11 479 (226) 11 253 7 737 – 7 737 365+ 41 924 (41 924) – 42 792 (42 792) –

Other exchange debtors 93 828 (12 665) 81 163 114 861 (9 355) 105 506 Not due 72 578 (63) 72 515 94 595 (110) 94 485 Past due 1 – 30 6 208 (27) 6 181 5 325 (17) 5 308 31 – 60 127 (13) 114 92 (8) 84 61 – 90 (1 415) 87 (1 328) 241 (25) 216 91 – 365 3 886 (205) 3 681 6 216 (803) 5 413 365+ 12 444 (12 444) – 8 392 (8 392) –

From non-exchange transactions 1 136 685 (838 106) 298 579 154 844 – 154 844

Government subsidies 112 385 – 112 385 107 506 – 107 506 Not due 112 385 – 112 385 107 506 – 107 506

Other non-exchange debtors 1 024 300 (838 106) 186 194 47 338 – 47 338 Not due 21 519 – 21 519 47 338 – 47 338 Past due 1 – 30 47 576 (39 180) 8 396 – – – 31 – 60 56 150 (46 241) 9 909 – – – 61 – 90 54 589 (44 956) 9 633 – – – 91 – 365 448 075 (369 003) 79 072 – – – 365+ 396 391 (338 726) 57 665 – – –

TOTAL 1 310 754 (893 450) 413 304 342 643 (52 147) 290 496

156 INTEGRATED Annual Report | 2013/14 11. 10. f NO o r

the Municipal Finance Management Act, section 125(2)(a). section Act, Finance Management Municipal the of in terms ofaccounts bank Cfor disclosure Appendix See R4,91 from note 46). (see restated billion 2013The has been billion of amount R4,90 comparative term deposits. short- and held cash comprise equivalents Cash cash and TOTAL Fair value–seenote5and45 Bank accounts–fundmanagers Call andtermdeposits see note 5 and 40 for more details. for more 40 see note 5 and ofA total R1,63 – liabilities of (2013: long-term billion repayment for the ring-fenced million) has been R900,88 Amortised cost–seenote5and45 TOTAL Call andtermdeposits Current portiontransferred tocurrent liabilities Cash onhandandintransit Subtotal –seeAppendixAformore details O Concessionary loans Year-end accruals Local registered stockloans BORROWINGS CASH ANDEQUIVALENTS (BANKANDCASH) Bank balance t Bank chargesaccrual I ther loans TES T nter h e

est accrual year O

e nd T e H d 30Jun E C ON e 2014(continued) S O L ID ATE D INTEGRATED A INTEGRATED F 5 7 0 4 6 5 4730196 2266559 4907440 2 652774 3 8 0 6 3 8 1109766 1337585 1109766 1 337585 2 6 9 2 2 6 1098128 1329160 1098128 1 329160 1 8 9 7 2 7 3620430 928974 3797674 1 315189 8 2 5 4 6 3 6936236 6666139 6951845 6 680623 6 7 8 7 2 4 3433001 721040 3584777 1 069173 5 5 7 4 3 6 7354402 7034464 7371341 7 050159 4 1 7 2 4 1 2071323 1945512 2071323 1 945512 7 8 8 3 7 8 4282536 4275489 4282536 4 275489 IN 3956 4946 3835 (418166) (368325) (419496) (369 536) E 829 158 1 9 7 6 7 8 146726 174987 172066 212 997 conomic 3054 0 29340873 32973 41001 33 045 2 16884511638 8425 11638 8 425 A R’000 2014 41 55 41 (565) (491) (565) (491) 6 9 6 395 465 395 465 2)(7)(6 (170) (26) (170) (26) N nn C u

a entity 1 8 1 6 1000543 813463 1 017482 I l R AL STATEME e po R’000 2013 rt |2 013/14 M unicip R’000 C 2014 ape T ality N own TS

of R’000 2013

157

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 11. BORROWINGS (continued) Municipality of Economic entity Cape Town 2014 2013 2014 2013 R’000 R’000 R’000 R’000 LOCAL REGISTERED STOCK LOANS 4 275 489 4 282 536 4 275 489 4 282 536 Absa Nominees (Pty) Ltd – 7 047 – 7 047 Secured bond bearing interest at a fixed rate of 14,65% per annum, payable semi-annually. As security, a sinking fund was established, which, together with interest capitalised, was used to settle the original loan liability on 31 March 2014. Listed bonds 4 275 489 4 275 489 4 275 489 4 275 489 In terms of the Entity’s domestic medium-term note (DMTN) programme, registered on the Johannesburg Stock Exchange (JSE) Limited, unsecured bonds totalling R4,20 billion are listed on the JSE. Each of the municipal bonds bears interest at fixed rates ranging between 11,16% and 12,57% per annum. Interest is payable semi-annually, while capital will be redeemed by way of a bullet repayment on the final redemption date. The municipal bonds are repayable on 23 June 2023 (CCT01), 12 June 2024 (CCT02) and 15 March 2025 (CCT03). Sinking funds have been established for the guaranteed repayment of the bonds by once-off lump sum payments with various financial institutions, namely Nedbank (CCT01), Rand Merchant Bank (CCT02) and Liberty Group Limited (CCT03).

CONCESSIONARY LOANS 1 945 512 2 071 323 1 945 512 2 071 323 Agence Française de Développement (AFD) 1 924 290 2 046 972 1 924 290 2 046 972 An unsecured loan of R2,38 billion bearing interest at an average fixed rate of 5,76% per annum. The sum is repayable semi-annually in equal instalments of capital, with interest payable on the reducing balance. This loan will be fully paid on 31 March 2028. Nedcor Bank 22 19 22 19 An unsecured loan bearing interest at a fixed rate of 1% per annum, payable annually, and loan capital repayable on 31 August 2019. Development Bank of Southern Africa (DBSA) 21 200 24 332 21 200 24 332 An unsecured fixed-term concessionary loan bearing interest at a fixed rate of 5% per annum, repayable semi- annually in equal instalments of capital, with interest payable on the reducing balance. This loan will be fully paid on 30 June 2020.

OTHER LOANS 829 158 1 017 482 813 463 1 000 543 DBSA 444 308 583 891 444 308 583 891 Unsecured loans bearing interest at fixed rates ranging between 9,42% and 12,25% per annum, repayable semi- annually in equal instalments of capital, with interest payable on the reducing balance. These loans have various final redemption dates, ranging from 30 June 2015 to 31 December 2022. Absa Bank 80 000 100 000 80 000 100 000 An unsecured loan bearing interest at a fixed rate of 10,90% per annum, repayable semi-annually in equal instalments of capital, with interest payable on the reducing balance. Final redemption on 30 June 2018.

158 INTEGRATED Annual Report | 2013/14 11. f NO o r

debt liability. to FirstRand Bank under the policies and any other to FirstRandBankassecurityfortheEntity’s obligations The Entityhascededandpledgedthesinking-fundpolicies Bank forR200millionontheacceptanceofpolicies. unguaranteed portfoliowere soldinadvancetoFirstRand (unguaranteed) portfolio.Thematurityproceeds ofthis i.e. R200million,wasinvestedinalinkedinvestment portfolio referred toabove.Thebalanceofthepremium, the premium wasinvested intheguaranteedinvestment for anupfront premium ofR220million.R20million 15-year sinking-fundpoliciesfrom MomentumGroup As partoftheloanstructure, theEntitypurchased two from MomentumGroup. two 15-yearsinking-fundinvestmentpoliciespurchased be madeoutoftheguaranteedinvestmentportfolios bullet repayment oftheR20 millioncapitalandinterest will bears interest atafixed rate of12,63%perannum.The together withfixedinterest on30June2017.Theloan and thebalanceofR20millionpayableinoneinstalment, instalments ofcapitalandfixed-rateinterest over15years, which, R200millionisrepayable semi-annuallyinequal A structured 15-year loan tothevalue of R220million, of FirstRand Bank debt liability. Bank undertheput-optionagreement andanyother Bank assecurityfortheEntity’s obligationstoFirstRand has cededandpledgedthesinking-fundpolicytoFirstRand of R894,60million,payableon30June2018.TheEntity sold in advance to FirstRand Bank for a fixed-option price the maturityproceeds ofthis unguaranteedportfoliowere and Future Growth. by theEntitytoMomentum,latersoldonFirstRandBank over 15yearsthrough aseries ofpromissory notesissued investment portfolio.Thepremium ispayablesemi-annually of R228,40million,whichwasinvestedinanunguaranteed sinking-fund policy from Momentum Group fora premium As partoftheloanstructure, theEntitypurchased a15-year fund investmentpolicypurchased from MomentumGroup. capital andinterest willbemadeoutofa15-yearsinking- 30 June 2018. Thebulletrepayment oftheR225,70million instalment togetherwithcapitalisedfixed-rateinterest on and thebalanceofR225,70millionpayableinone years, instalments ofcapitalandfixedinterest over15 which, R74,30millionisrepayable semi-annuallyinequal bearing interest atafixedrateof12,05%perannum, A structured 15-yearloantothevalueofR300million FirstRand Bank OTHER LOANS(continued) BORROWINGS t TES T h e

year O

e nd T e (continued) H d 30Jun I n termsofaput-optionagr E C ON e 2014(continued) S O L ID ATE eement, D

INTEGRATED A INTEGRATED F IN E 5 2 6 8 5 2 168187 158723 168187 158 723 3 3 4 6 3 3 148465 130432 148465 130 432 conomic A R’000 2014 N nn C u

a entity I l R AL STATEME e po R’000 2013 rt |2 013/14 M unicip R’000 C 2014 ape T ality N own TS

of R’000 2013

159

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 11. BORROWINGS (continued) Municipality of Economic entity Cape Town 2014 2013 2014 2013 R’000 R’000 R’000 R’000 OTHER LOANS (continued) DBSA – Claremont Road Bypass Company 15 609 16 704 – – Interest is charged at a nominal fixed rate of R186 plus 154 basis points per annum. Repayable in 28 equal six-monthly instalments, commencing on 30 September 2009. Secured by an agreement of cession from Claremont City Improvement District (CID) Company (association incorporated under section 21) (cedent) over their right and title to the levies collected by the City of Cape Town from the Claremont CID ratepayers in terms of the cooperation agreement. The cedent, the company and the City of Cape Town concluded a cooperation agreement in terms of which the City of Cape Town undertook to pay to the cedent levies collected from the ratepayers within the Claremont CID. Voortrekker Road 86 – – – Instalment sale agreement Loans from members – Zwaanswyk – 235 – – The loans bear interest at 9% and are payable by 30 June 2014. TOTAL – see Appendix A for more details 7 050 159 7 371 341 7 034 464 7 354 402

The rates of interest payable on the abovementioned structured loans are based on certain underlying assumptions relating to the lenders’ statutory costs, and the admissibility of deductions by the lenders for income tax purposes in connection with these loans. In the event of amendments to, or interpretations of, the Income Tax Act (Act No.58 of 1962) or any other relevant legislation that affect the loan structure costs, the lenders have the right to increase or decrease the future rates of interest payable on the loans over their remaining lives, in order to absorb the increase or decrease in costs.

SHORT-TERM DEBT FACILITIES The Municipality had the following short-term debt facilities with the Entity’s main banker:

2014 2013 R’000 R’000 Performance guarantee and/or letters of credit 15 000 15 000 Business travel card 2 000 2 000 Daylight limit 2 000 000 2 000 000

The short-term debt facilities are reviewed annually and can be explained as follows: Performance guarantee and/or letters of credit A guarantee issued by the bank is an undertaking that should the Entity fail to fulfil its obligations in terms of a contract or an agreement the bank will pay specific amounts as stated on the guarantee. The monies are due and payable on the written demand from the beneficiary. A letter of credit is a document issued by the bank, assuring payment to a seller of goods or services, provided that certain documents have been presented to the bank. The documents should prove that the seller has performed the duties specified by an underlying contract, and that the goods/services have been supplied as agreed. In return for these documents, the beneficiary receives payment from the bank that issued the letter. Business travel card A card issued by the bank that enables the Entity to obtain goods and services on credit. It entails monies lent and advanced. Daylight limit A daylight limit is a facility that enables the Entity to transact even if there are insufficient funds during that particular day. It entails monies lent and advanced during that day, provided it is settled by the end of that business day.

160 INTEGRATED Annual Report | 2013/14 12. f NO o r

with the estimated term of the liability. of the term Adiscount rate of 8,10% estimated the with (2013: 7,65%) used. annum has been per June 30 2014 as at consistent bonds government on liability marketthe discounted at yields fund benefit been The has Discount rate benefits. vested of value the the receive employees eligible when is utilised provision The thereafter. fiveyears every and of service completion 10 upon years’ entitled become may employees which to benefits leave relating to vested benefits leave for long-service liability Entity’s of the performed has been valuation actuarial An leave benefits Long-service TOTAL TOTAL Transfer tocurrent provision Transfer tocurrent provision Transferred from current provisions (prioryear) Transferred from current provisions (prioryear) Actuarial (gains)/losses Actuarial (gains)/losses Benefit payments Benefit payments Service costs Service costs I I by a firm of consulting engineers. byof afirm engineers. consulting performed valuation of arecent independent basis the on determined has been provision The sites. waste rehabilitating P Environmental rehabilitation Salary increase General inflationrate(consumerpriceindex) D Key financialassumptions Balance atthebeginningofyear As at30June2014 Balance atthebeginningofyear As at30June2014 PROVISIONS (NON-CURRENT) nter nter t ro iscount rate TES T h vision is made in terms of the Entity’s licensing stipulations on the waste landfill sites, for the estimated cost of cost estimated the sites, for landfill waste the on licensing Entity’s stipulations of in the terms is made vision e est costs est costs

year O

e nd T e H d 30Jun E C ON e 2014(continued) S O L ID ATE 3 2 7 6 4 9 1265783962 31276 5041990 274069 436 627 5783962 31276 5041990 274069 436 627 0 9 0 6 1 7 3366049940 33306 5211674 302069 502 891 6049940 33306 5211674 302069 502 891 3 2 3 9 2 5 4694552513 54649 3728253 332991 436 620 4552513 54649 3728253 332991 436 620 benefits benefits 6 6)(800 1964 200 (265978) (2030) (169684) (28000) (66 264) (265978) (2030) (169684) (28000) (66 264) (47 392) (47 392) 9096 0 5 5 2 265 837 2125 154653 60000 49 059 265 837 2125 154653 60000 49 059 4754 4 735201179451 2021 97345 45340 34 745 179451 2021 97345 45340 34 745 7143 8 5 0 3 432 078 5235 358004 31685 37 154 432 078 5235 358004 31685 37 154 service service 725 1797 2 5 2 1)822396 (29518) 1027156 (167947) (7 295) 822396 (29518) 1027156 (167 947) (7 295) Long- Long- R’000 R’000 leave leave D INTEGRATED A INTEGRATED F rehabilitation rehabilitation IN Environ- Environ- M mental mental unicipality A R’000 R’000 N E 1377 126 (202335) (1206) (153737) – (202335) (1206) (153737) – conomic nn C u a I retirement retirement healthcare healthcare l R AL STATEME benefits benefits e

of po R’000 R’000 Post- Post-

entity C rt ape |2 013/14 T retirement retirement own benefits benefits pension pension R’000 R’000 2014 ,06,82 5,82 8,00 6,00 8,10 Post- Post- % N TS R’000 R’000 2013 7,65 Total Total

% 161

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 12. PROVISIONS (NON-CURRENT) (continued) The key cost parameters upon which the valuation is based for the present and previous financial years are briefly as follows: • An annual inflation rate of 5,90% (2013: 5,60%), discounted to present values at the average borrowing cost of 10,42% (2013: 9,81%). • The scheduled dates of total closure and rehabilitation are at present anticipated to be between 2015 and 2025. Post-retirement medical aid and pension benefits An actuarial valuation has been performed of the Entity’s liability in respect of benefits to its eligible retirees and retrenched employees. The provision is utilised when eligible employees receive the value of the vested benefits – see note 47 for more details.

13. DEPOSITS Municipality of Economic entity Cape Town 2014 2013 2014 2013 R’000 R’000 R’000 R’000 Electricity and water 364 235 305 337 364 235 305 337 Other deposits 34 290 27 951 5 982 2 880 TOTAL 398 525 333 288 370 217 308 217 Guarantees held in lieu of electricity and water deposits were R79,08 million (2013: R13,18 million). Deposits are released when the owner/occupant of a property terminates the contract with the Entity to supply water and electricity to the property, or when certain contractual services are delivered.

14. PROVISIONS (CURRENT) Economic entity Opening Transfers Closing balance Utilised/ from balance 2014 Raised Reversed non-current 2014 R’000 R’000 R’000 R’000 R’000 Other provisions 1 082 139 69 557 (878 693) – 273 003 Insurance claims 10 255 20 856 (10 255) – 20 856 Post-retirement benefits 156 778 – (156 778) 171 714 171 714 Environmental rehabilitation 60 000 – (60 000) 28 000 28 000 Leave benefits 508 063 59 709 (49 059) 66 264 584 977 Performance bonuses 2 689 3 249 (2 689) – 3 249 TOTAL 1 819 924 153 371 (1 157 474) 265 978 1 081 799 Municipality of Cape Town Opening Transfers Closing balance Utilised/ from balance 2014 Raised Reversed non-current 2014 R’000 R’000 R’000 R’000 R’000 Other provisions 1 082 139 69 557 (878 693) – 273 003 Insurance claims 10 255 20 856 (10 255) – 20 856 Post-retirement benefits 156 778 – (156 778) 171 714 171 714 Environmental rehabilitation 60 000 – (60 000) 28 000 28 000 Leave benefits 508 063 59 709 (49 059) 66 264 584 977 TOTAL 1 817 235 150 122 (1 154 785) 265 978 1 078 550 Insurance and COID claims Provision has been made for outstanding insurance claims as at 30 June 2014, funded out of the insurance reserve. The assessment of claims is based on the assessed quantum of claims received. Staff leave Annual leave accrues to employees on a monthly basis, subject to certain conditions. The provision is an estimate of the amount due to staff as at the financial yearend, based on the value of statutory and non-statutory leave. Other provisions Included in ‘Other provisions’ is an amount of R203,45 million for the taxi associations’ compensation relating to the implementation of the expanded IRT routes. The remainder of the balance consists of various other provisions. Performance bonuses Performance bonuses accrue to staff on an annual basis based on the achievement of predetermined performance standards. The provision is an estimate of the amount due to staff in the service of the CTICC at the reporting date.

162 INTEGRATED Annual Report | 2013/14 17. 16. 15. f NO o r

The 2013 comparative amount of R4,54 billion has been restated from R4,54 billion (see note 46). (see billion 2013 R4,54 from The restated has been billion of amount R4,54 comparative timeframe. areasonable within are in to are place paid ensure that all payables policies Management P agreement. contract of the terms P projects for which they were intended. were they for which projects of the to conclusion the years three or two next over the spent grant be will conditional of the portion unspent The public contributions. from grants note 27 on See 28 and 12 details for more MFMA. of the inof terms section invested are separately amounts These out above. set reasons for the to donors, the forare repayment due to groups’ participation. due interest process I against debtors. against TOTAL TOTAL The City ofTown Cape City for The is registered O P TOTAL Third-party payments Other conditionalreceipts V I P I P N V Trade creditors Conditional grantsfrom otherspheres ofgovernment VAT UNSPENT CONDITIONALGRANTSANDRECEIPTS PAYABLES FROMEXCHANGETRANSACTIONS nter mpairment n ma t ay ay ublic contributions r ayments r AT r AT payable ational Gover ther cr TES T ovincial Government oftheWesternCape ovincial Government h ables are non-interest-bearing and are normally settled on 30-day terms, except for retentions, which are settled in are settled except for which terms, retentions, 30-day on settled are and normally are non-interest-bearing ables ments received in advance are non-interest-bearing and normally settled on 30-day terms. 30-day on settled normally and are non-interest-bearing in advance received ments e -company advances eceivable

ny instances, the launch of projects is a protracted is aprotracted launch of projects the ny instances, year editors eceived inadvance N O

e at nment nd ional and and ional T e H d 30Jun E C P ro vincial Government as well as as well as Government vincial ON e 2014(continued) S V O AT L on the payment basis. The The basis. payment the on ID N o am ATE ounts ounts D INTEGRATED A INTEGRATED F 9 8 4 9 6 7 4517030 4763375 4546094 4 793980 4 0 5 6 3 0 3040810 3136700 3055760 3 148906 9 6 5 5 9 6 858556 1495768 858556 1 495768 2 4 9 3 2 4 797 039 1428847 797039 1 428847 4 4 2 9 4 4 527 091 1046140 527091 1 046140 IN E 2626 2246 2626 (272416) (286266) (272416) (286 266) E 5 5 7 6 4 5 358754 341353 372868 359 752 0 0 6 6 0 0 263563 302703 263563 302 703 5 3 0 1 5 3 809319 955238 809319 955 238 6 8 4 0 6 8 341907 365287 341907 365 287 8 0 6 4 8 0 269948 382707 269948 382 707 322 429 conomic conomic 7314 8 73144584 27381 44584 27 381 9016 9 90169491 79021 69491 79 021 6916 1 69161517 66921 61517 66 921 66 921 42 858 A R’000 R’000 2014 2014 V AT l N nn iability was impaired as a result of impairment of a result as impairment impaired was iability C u

entity a entity I l R AL STATEME 8 5 2 2 385756 322429 385 756 4 4)4 5 (43849) 42858 (43 849) e 1576 2 61517 66921 61 517 po R’000 R’000 2013 2013 rt |2 013/14 M M unicip unicip R’000 C R’000 C 2014 2014 ape ape T T ality ality N own own TS

of of R’000 R’000 2013

2013

163

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued)

18. HOUSING DEVELOPMENT FUND Municipality of Economic entity Cape Town 2014 2013 2014 2013 R’000 R’000 R’000 R’000 Realised housing proceeds Balance at beginning of the year 384 125 404 597 384 125 404 597 Income 42 155 40 017 42 155 40 017 Land sales 3 116 3 244 3 116 3 244 Repayments – long-term debtors 32 407 30 777 32 407 30 777 Repayments – public organisations 1 192 1 514 1 192 1 514 Service contributions 3 467 4 406 3 467 4 406 Subsidy refunds and other 1 973 76 1 973 76 Interest 14 952 17 784 14 952 17 784 Expenditure (89 818) (70 241) (89 818) (70 241) Funding capital projects (22 089) (21 006) (22 089) (21 006) Funding operating projects (67 729) (49 235) (67 729) (49 235) Non-cash transfer to provision for impairment (5 192) (8 032) (5 192) (8 032) Balance at end of the year 346 222 384 125 346 222 384 125

Unrealised housing proceeds Balance at beginning of the year 120 231 116 866 120 231 116 866 Loans realised (25 734) (35 732) (25 734) (35 732) Long-term housing loans (24 138) (22 647) (24 138) (22 647) Long-term loans – public organisations (1 596) (13 085) (1 596) (13 085) Transfer to impairment provision – long-term selling schemes 26 236 39 589 26 236 39 589 Transfer to impairment provision – long-term public organisations 1 464 (492) 1 464 (492) Balance at the end of the year 122 197 120 231 122 197 120 231

TOTAL 468 419 504 356 468 419 504 356

Unrealised housing proceeds represent loan repayments not yet due in terms of the debtor’s loan agreement.

164 INTEGRATED Annual Report | 2013/14 24. 23. 22. 21. 20. 19. f NO o r

The 2013comparativeamount ofR640,67millionhasbeenrestated from R555,82 million(seenote46). TOTAL TOTAL instruments. financial in ringfenced invested and are fullyfunded reserve self-insurance the and reserve replacement capital The O TOTAL I Non-exchange transactions TOTAL I I Wastewater management(sewerageandsanitation) I Waste management(solidwaste) I H Sale ofwater lives. useful assets’ overthe charges earmarked to depreciation fund the R16,35of (2013: billion R15,05 and included are billion) to value the acquiredgrant-funded from assets Receipts I * Exchange transactions Rental agreements 8888 Sale ofelectricity 8013 TOTAL Share ofnetsurplusattributable tonon-controlling interest Transfer tofor share purchases Share purchases bynon-controlling interest holders Balance atbeginningoftheyear Accumulated surplus Capital replacement reserve FINANCE INCOME RENTAL OFLETTINGSTOCKANDFACILITIES SERVICE CHARGES NON-CONTROLLING INTEREST ACCUMULATED SURPLUS RESERVES nter nter ncome forgone* nter nter nsurance r t of remission. Income forgonecan bedefinedasanyincomethattheCity ofCape Town isentitledby lawtolevy ir ther TES T h C Self-insurance reserve e/rentals OID e est receivable –outstandingratedebtors est receivable –outstandingservicedebtors s rnfre oetra ud cniinlgat)(338 6 3)(338 (66432) (53368) (66432) (53368) est transferredfunds(conditionalgrants) toexternal est receivableinvestments –external

year r eserve eserve O

e nd T e H d 30Jun E C ON e 2014(continued) S O L ID ATE D INTEGRATED A INTEGRATED F 403401 4 1 3936013099805 13903680 13242118 14 063470 200922 7 3 1867620159376 21896756 20279133 22 000972 5 9 9 6 5 9 1793464 1751497 1793464 1 751497 8 0 9 9 8 0 1091897 1188106 1091897 1 188106 8 9 5 2 8 1 2053577 2185812 2052721 2 184898 1 5 4 6 2 4 8853037 9323247 8843866 9 313459 1281721 1187993 1281721 1 187993 IN E 6 3 4 7 5 6 632187 653365 640678 665 635 539 626 1 9 0 0 1 9 306606 317890 306606 317 890 3 8 7 4 3 8 775144 837381 775144 837 381 5 7 4 8 5 7 340485 351270 340485 351 270 6 0 1 4 6 0 511743 563504 511743 563 504 9 4 5 2 8 7 547130 581877 555621 594 147 292535 318515 292535 318 515 144658 234 947 135770 144 658 2 2 8 9 2 2 183192 120824 183192 120 824 9 4 5 7 9 4 450175 493849 450175 493 849 2 9 3 6 1 2 430370 514421 438861 526 691 (33 380) conomic 1488 5 14885057 71 488 85057 71 488 2754 5 27547950 32755 47950 32 755 9656 6 96561568 69655 61568 69 655 33 202 33 49 074 49 A R’000 2014 N nn C u , butwhichhassubsequently beenforgonebyway

a entity I l R AL STATEME 7 9 6 3 326150 369134 478 490 3 7)(330 (33879) (33380) (33 879) e po R’000 2013 rt – – |2 013/14 M unicip R’000 C 2014 ape T ality N own TS

of R’000 2013

165

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued)

25. OTHER INCOME Municipality of Economic entity Cape Town 2014 2013 2014 2013 R’000 R’000 R’000 R’000 Exchange transactions 368 368 751 851 237 850 636 212 Insurance recoveries 2 103 1 394 2 017 1 217 Bulk infrastructure levies 60 054 69 524 60 054 69 524 Skills development levy 20 503 28 118 20 503 28 118 Investment impairment reversed – 4 288 – 4 288 Other income 160 804 140 517 147 844 131 964 Gains on foreign-exchange transactions – 138 – 98 Fair value adjustments 7 432 401 003 7 432 401 003 City improvement districts 117 472 106 869 – – Non-exchange transactions City improvement districts – – 118 487 106 869 TOTAL 368 368 751 851 356 337 743 081 The 2013 comparative amount of R751,85 million has been restated from R751,71 million (see note 46). The Entity received services in kind to an estimated value of R137,02 million (2013: R7,65 million) in the form of volunteers. This amount is not recognised as revenue or as an asset as such in the statement of financial performance. 26. PROPERTY RATES Actual Residential, commercial and state 6 548 249 6 041 383 6 552 820 6 043 222 Income forgone* (1 006 046) (966 777) (1 006 046) (966 777) TOTAL PROPERTY RATES 5 542 203 5 074 606 5 546 774 5 076 445 Exempt properties are excluded from the property rates valuation. The total property rates 2013 comparative amount of R5,07 billion has been restated from R5,16 billion (see note 46). The ‘residential, commercial and state’ 2013 comparative amount of R6,04 billion has been restated from R6,10 billion, and the ‘income forgone’ amount of R966,78 million has been restated from R1,02 billion. This is due to statutory rebate on the first R15 000 of the market value as per the valuation roll of residential property that should not have been included in both ‘residential, commercial and state’ total as well as ‘income forgone’. Valuations Rateable properties 884 713 852 768 198 772 884 713 852 768 198 772 Non-rateable properties 24 052 160 25 716 162 24 052 160 25 716 162 Total property rates at commencement of financial year 908 766 012 793 914 934 908 766 012 793 914 934

Valuations per category Residential 624 049 005 539 230 646 624 049 005 539 230 646 Commercial 244 438 376 181 878 233 244 438 376 181 878 233 Agriculture 20 747 223 8 618 247 20 747 223 8 618 247 State 8 407 241 39 638 134 8 407 241 39 638 134 Municipal 11 124 167 24 549 674 11 124 167 24 549 674 Total property rates at commencement of financial year 908 766 012 793 914 934 908 766 012 793 914 934 The last general valuation came into effect on 1 July 2013, and is based on market-related values. Property valuations adjustments, such as supplementary valuations, objection valuations and Valuation Appeal Board decisions, are processed weekly to take into account changes to individual property values due to alterations and subdivisions. Rates are levied on a daily basis and are payable monthly. Interest is raised monthly on accounts in arrears at prime plus 1% per annum. * Income forgone can be defined as any income that the City of Cape Town is entitled by law to levy, but which has subsequently been forgone by way of remission. . 166 INTEGRATED Annual Report | 2013/14 27. f NO o r

– seenote16 Conditions stilltobemet–transferred toliabilities Amounts stilltobeclaimed Conditions met–transferred torevenue Adjustments I Current-year receipts Regrouping adjustment Balance unspentatbeginningoftheyear Provincial projects andCMTF withheld. amounts any were nor subsidies, of the in payment delays no were There met. grant of the have conditions been The services. to fund clinic exclusively used grant has This been incurred. for expenditure partially is refunded and Government, of the behalf on services health renders Entity The Conditions stilltobemet–transferred toliabilities Conditions met–transferred torevenue Current-year receipts –includedinpublichealthvote Balance unspentatbeginningoftheyear Provincial healthsubsidies Capital O Analysis of government grantsandsubsidies Analysis ofgovernment to communities. indigent services of basic provision the to subsidise are used grants These Unconditional grants funding. grant of level the in decrease asignificant foresee not does Entity The TOTAL O P N Cape Metropolitan Transport Fund(CMTF) P Conditional grants Equitable share Unconditional grants GOVERNMENT GRANTSANDSUBSIDIES nter t r r ational pr perating ther TES T ovincial projects –other ovincial healthsubsidies h e est earned

year ojects O

e nd T e H d 30Jun E C ON e 2014(continued) S O L ID P ATE ro vincial vincial D INTEGRATED A INTEGRATED F 4 9 9 4 4 9 5394440 4442190 5394440 4 442190 5 5 1 4 5 5 3414645 2052758 3414645 2 052758 2 389432 4 9 9 4 4 9 5394440 4442190 5394440 4 442190 9 2 1 2 9 2 4310024 3198920 4310024 3 198920 4 7 8 1 4 7 1084416 1243270 1084416 1 243270 8 1 9 2 8 1 3297721 2189119 3297721 2 189119 4 7 8 1 4 7 1084416 1243270 1084416 1 243270 IN 3277 2998 3277 (269948) (382707) (269948) (382 707) 1793 1586 1793 (105806) (107983) (105806) (107 983) 9755 8789 9755 (867899) (937585) (867899) (937 585) 2998 2496 2998 (224906) (269948) (224906) (269 948) 1708 1965 1708 (129645) (137078) (129645) (137 078) E 6 4 6 9 6 4 860196 860341 860196 860 341 3 7 2 4 3 7 129645 137078 129645 137 078 3 2 5 2 3 2 858821 836024 858821 836 024 3 7 2 4 3 7 129645 137078 129645 137 078 conomic 3063 8 30631481 33056 31 481 33 056 8704 4 87044042 48740 44042 48 740 12 382 4371352 1 1375 24317 1375 24 317 938 706 938 (7056) (9328) (7056) (9 328) A R’000 2014 N – – nn C u

a entity 7 9 8 3 1979795 2389432 1 979795 I l R AL STATEME 2421 8 22 462 12382 22 462 e po R’000 2013 rt – – |2 013/14 M unicip R’000 C 2014 ape – – T ality N own TS

of R’000 2013

– – 167

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued)

27. GOVERNMENT GRANTS AND SUBSIDIES (continued) Municipality of Economic entity Cape Town 2014 2013 2014 2013 R’000 R’000 R’000 R’000 National Government projects Balance unspent at beginning of the year (527 091) (1 378 915) (527 091) (1 378 915) Regrouping adjustment 60 – 60 – Current-year receipts (2 672 459) (2 389 988) (2 672 459) (2 389 988) Interest earned (40 879) (56 369) (40 879) (56 369) Adjustments 5 110 521 5 110 521 Conditions met – transferred to revenue 2 189 119 3 297 721 2 189 119 3 297 721 Amounts still to be claimed – (61) – (61) Conditions still to be met – transferred to liabilities – see note 16 (1 046 140) (527 091) (1 046 140) (527 091) These grants received from National Government are for operating and capital expenditure, such as budget reform, restructuring, urban renewal, and so forth. Other than the amounts unspent, the conditions of the grants have been met – see Appendix E. 28. PUBLIC CONTRIBUTIONS Public contributions: Consumer connections 37 423 31 932 37 423 31 932 Other 48 635 10 996 48 585 10 684 TOTAL 86 058 42 928 86 008 42 616

Public contributions and other third-party funds Balance unspent at beginning of the year (61 517) (61 931) (61 517) (61 931) Regrouping adjustment 1 639 – 1 639 – Current-year receipts (52 670) (40 429) (52 670) (40 429) Interest earned (923) (502) (923) (502) Adjustments (35 056) 368 (35 056) 368 Conditions met – transferred to revenue 86 058 42 616 86 008 42 616 Amounts still to be claimed (4 402) (1 639) (4 402) (1 639) Conditions still to be met – transferred to liabilities – see note 16 (66 871) (61 517) (66 921) (61 517) The Entity receives grants from various private donors for operating and capital projects. Included in these funds are monies held on behalf of third parties. Other than the amounts unspent, the conditions of the grants have been met. No funds have been withheld. 29. EMPLOYEE-RELATED COSTS Salaries and wages 5 367 580 4 793 008 5 323 227 4 753 781 Social contributions – Unemployment Insurance Fund, pensions and medical aid 1 399 353 1 259 152 1 394 292 1 254 508 Travel, car, accommodation, subsistence and other allowances 338 487 305 813 338 487 305 813 Housing benefits and allowances 26 512 29 266 26 512 29 266 Overtime payments 360 168 335 494 359 418 335 100 Contribution and benefits paid: current provisions (304 166) 182 037 (304 166) 182 037 Contribution: post-retirement and long-service benefits 1 524 847 608 305 1 524 847 608 305 Current service costs 134 111 137 343 134 111 137 343 Interest costs 400 393 305 758 400 393 305 758 Actuarial losses 990 343 165 204 990 343 165 204 8 712 781 7 513 075 8 662 617 7 468 810 Expenditure recharged to capital projects (21 763) (22 611) (21 763) (22 611) TOTAL 8 691 018 7 490 464 8 640 854 7 446 199

The 2013 comparative amount of R7,49 billion has been restated from R7,49 billion (see note 46).

168 INTEGRATED Annual Report | 2013/14 34. 33. 32. 31. 30. f NO o r

TOTAL Reimbursement oftravelclaims Board members(CT Councillors’ pensioncontributions Councillors restated from R1,64 from restated note 46). (see billion 2013The of amount R1,64 comparative has been billion P restated from R730,79 from restated note 46). (see million 2013The of amount R730,28 comparative has been million NET TOTAL DEPRECIATION ANDAMORTISATION Subcouncil chairpersons TOTAL Grants-funded assetsfinancedfrom reserves Mayoral Committeemembers Bond issueexpenses – seenotes1,3,4andAppendixB TOTAL DEPRECIATION AND AMORTISATION EXPENSES Chief Whip TOTAL U Amortisation ofintangibleassets TOTAL Speaker Water Losses onvaluationofinvestment D I D Electricity Borrowings (amortisedcost) D Allowances forimpairmentlosses Executive Mayor BULK PURCHASES FINANCE COSTS DEPRECIATION ANDAMOR IMPAIRMENT COSTS REMUNERATION OFCOUNCILLORS EXPENSES mpairment ofpr t ortfolio chairpersons nwinding ofdiscount epr eputy ExecutiveMayor epreciation ofproperty, plantandequipment TES T h e eciation ofinvestmentproperty

year O

e nd T operty, plant andequipment e I H CC) d 30Jun E C ON e 2014(continued) TISATION S O L ID ATE D INTEGRATED A INTEGRATED F 7 8 4 5 5 7 1620275 1752270 1641953 1 774683 9 3 9 8 9 3 6391186 6591232 6391186 6 591232 933 922 1328226 934057 1 327820 8 1 9 9 8 1 6097891 6283114 6097891 6 283114 1591 1699964 1613269 1 722377 926 812 1295526 926947 1 295120 IN 8865 6226 8865 (632276) (828615) (632276) (828 615) E 2 5 1 8 1 0 111673 119708 111881 120 153 1 4 1 8 1 9 107587 113595 111881 114 040 4 6 0 7 2 5 987 999 923655 1009677 946 068 0 8 3 8 0 8 728669 807283 730283 808 782 0 1 9 9 0 1 293295 308118 293295 308 118 7 6 7 9 7 6 675881 774768 677495 776 267 conomic 6696 4 66962659 66 609 66745 66 609 11 697 8941 2 89418025 18994 18025 18 994 0652 5 06527055 50 665 27055 50 665 31 685 2707103 0 7110 32700 7110 32 700 6 113 8 8 8 4488 4582 4488 4 582 9 8 9 7786 8097 7786 8 097 4 2 4 1629 1641 1629 1 641 6 0 6 1108 1164 1108 1 164 A R’000 2014 445 7 3 7 734 770 734 770 4 8 4 781 841 781 841 3 0 3 7903 830 7903 830 841 N 13349 – nn C u

a entity I l R AL STATEME e 1251 9 11225 11697 11 225 1563 8 31536 31 685 31 536 po R’000 2013 208 8 4 781 841 781 rt |2 1 4086 6113 – 013/14 M unicip R’000 C 2014 ape – 13349 – T ality N own TS

of R’000

2013

– 169

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued)

35. GRANTS AND SUBSIDIES PAID Municipality of Economic entity Cape Town 2014 2013 2014 2013 R’000 R’000 R’000 R’000 Ad hoc 39 326 213 39 313 – Community development and upliftment 1 338 8 918 1 338 8 918 Economic development and promotion of tourism 41 947 66 368 41 947 66 368 Education institutions 413 365 413 365 Health forum/health, HIV/Aids and TB programmes 2 649 4 768 2 649 4 768 Senior citizens – facilities for the aged 100 100 100 100 Social development and arts and culture – 7 674 – 7 674 Sporting bodies 285 520 285 520 Cape Town World Design Company 22 800 8 500 22 800 8 500 Khayelitsha Community Trust 6 176 5 931 6 176 5 931 TOTAL 115 034 103 357 115 021 103 144

The 2013 comparative amount of R103,36 million has been restated from R94,86 million (see note 46).

36. GENERAL EXPENSES Auditor remuneration 13 537 14 059 12 126 13 307 CID levy – – 114 884 103 663 Consultants 130 184 167 818 123 776 162 459 Contributions to/(from) provisions (34 246) 31 765 (34 246) 31 765 Free basic electricity (FBE) – Eskom service areas 101 730 101 147 101 680 101 075 Fair value adjustments (4) 209 (4) 209 Fuel (petrol, diesel and fuel oil) 269 653 221 073 268 642 220 407 Indigent relief 469 646 446 475 469 646 446 475 Inventory: Scrapping 3 268 803 3 268 803 Legal fees 45 664 44 074 42 866 42 954 Loss on foreign exchange transactions 3 009 505 3 002 505 Materials general and consumables 332 011 303 192 299 153 284 193 Security services 404 240 349 922 398 863 344 827 Telecommunications 97 749 106 097 96 155 104 502 Other expenditure (less than 5%) 1 831 029 1 763 291 1 790 213 1 720 268 3 667 470 3 550 430 3 690 024 3 577 412 Expenditure recharged to capital projects (1 772) (3 165) (1 772) (3 165) TOTAL 3 665 698 3 547 265 3 688 252 3 574 247

The 2013 comparative amount of R3,54 billion has been restated from R3,55 billion (see note 46).

170 INTEGRATED Annual Report | 2013/14 38. 37. f NO o r

Cash generatedfrom operations prtn upu eoewrigcptlcags5110858863504865802 946 5064816 5848603 5111078 Operating surplusbefore workingcapitalchanges Adjustment for: Surplus fortheyear 4640 Taxation 2201 Statement offinancialperformancecharge T Reverse temporarydifferences onfinanceleaseobligations Capital allowance(non-deductibletemporarydifferences) The balancecomprises At endoftheyear Reverse temporarydifferences onfinanceleaseobligations Reverse temporarydifferences onprepayments At thebeginningofyear CIDs At theendofyear Temporary differences At thebeginningofyear differences, usingataxrateof28%(2013:28%). D CTICC Deferred taxation CASH GENERATED FROMOPERA TAXATION

t ot eferr TES T I I and receipts I h I I I Finance costs Finance income I Contribution toimpairmentprovision Contribution toprovisions Gains andlossesondisposalofassets Gains onforeign-exchange transactions Fair-value adjustment–concessionaryloans I Contributed assets D Curr ncr ncr ncr ncr ncr ncr nvestment impairmentr mpairment epr e al

ease innet ease inpayables ease/(decrease) inunspentconditionalgrants ease inotherreceivables ease inreceivables ease ininventories ed incometaxesare calculatedonalltemporary year ent year: eciation O

nd T V C CT AT ID e H I CC d 30Jun s E C eversed ON e 2014(continued) S O TIONS L ID ATE D INTEGRATED A INTEGRATED F 2 3 1 7 7 4 5466459 4577749 5518776 4 629332 1 4 7 6 0 4 2359220 3405340 2373562 3 417441 9 3 7 4 5 7 3443726 1659476 3475041 1 693637 2 3 1975 2 8 (129826) 1027188 (129705) 1 026638 7 8 4 5 5 7 1620275 1752270 1641953 1 774683 IN E 9437 3 4)(6 1)(24 103) (968111) (30449) (964 377) 3935 1658 3930 (106494) (399310) (106508) (399 315) 6565 6068 6335 (632187) (653365) (640678) (665 635) E 4 8 0 7 4 4 593113 246345 605876 247 886 3 1 8716 3 1 (807 196) 637212 (807196) 637 212 0 8 3 8 0 8 728669 807283 730283 808 782 6 3 3 5 6 7 1236234 461079 1235855 461 639 conomic 1 8)( 8)(273 (3542) (12733) (3285) (12 682) 6 6)(513 6 6)(85304) (62962) (85153) (62 463) 3 3)( 3)(337 (2527) (33387) (2839) (33 437) conomic 190(7 3)4 1 (378838) 41910 (378838) 41 910 65 324 249 (2275) (2 439) 0 4697 2 201 0 4640 6915 2 201 4 640 8 252 8 487 9 530 A R’000 R’000 2014 2014 235 5)27 (57) 57 N – – – (4288) – (138) – nn C u

a entity entity I l R AL STATEME 17595011 735 9530 11 735 e 8 908 8 877 po 1 5347110 65 324 7 110 R’000 R’000 2013 2013 rt 57 57 26 31 4 |2 013/14 M M unicip unicip R’000 C R’000 C 2014 2014 ape ape (4288) – (98) – T T ality ality N own own TS

of of R’000 R’000 2013

2013

171

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued)

39. CASH AND CASH EQUIVALENTS Municipality of Economic entity Cape Town 2014 2013 2014 2013 R’000 R’000 R’000 R’000 Balance at end of the year 2 652 774 4 907 440 2 266 559 4 730 196 Balance at beginning of the year 4 907 440 3 481 533 4 730 196 3 327 832 Net (decrease)/increase in cash and cash equivalents (2 254 666) 1 425 907 (2 463 637) 1 402 364

40. RECONCILIATION OF UTILISATION OF LONG-TERM BORROWINGS Borrowings raised – see Appendix A 86 2 384 420 – 2 384 420 External Finance Fund (EFF) – earmarked capital expenditure (6 551 825) (5 676 732) (6 551 825) (5 676 732) 2012/13 and prior years (4 694 936) (3 923 308) (4 694 936) (3 923 308) Current year (1 856 889) (1 753 424) (1 856 889) (1 753 424) Total EFF (overdrawn) (6 551 739) (3 292 312) (6 551 825) (3 292 312) Cash set aside for the repayment of borrowings – see note 5 and 11 1 631 750 900 875 1 631 750 900 875 Cash overdrawn (4 919 989) (2 391 437) (4 920 075) (2 391 437)

41. BUDGET INFORMATION The explanatory comments on the budget variances have been provided on the consolidated Entity’s variances, since the impact of the subsidiaries’ variances is minimal. 41.1 Explanation of variances between approved and final budget amounts The reasons for the variances between the approved and final budgets are mainly due to virements. The increase in the expected capital budget is due to the reprioritisation of capital projects, with corresponding changes to funding sources. 41.2 Explanation of variances greater than 5%: Final budget and actual amounts 41.2.1 Statement of financial position Total assets i) Current assets Investments were much lower than budgeted due to the reclassification of funds held by fund managers to non-current assets, as the funding of the City’s long-term debt had to be secured. 41.2.2 Statement of financial performance Revenue i) Rental of letting stock and facilities The variance is due to a lower utilisation of facilities and the transfer of rental properties to owners. ii) Finance income The variance is a result of interest earned on the continuously favourable cash/investment balance during the year – better than what was anticipated with the original budget planning. iii) Licences and permits The variance is due to higher-than-expected issuing of licences and permits. iv) Agency services The variance is due to an increase in transactions processed. v) Other income The variance is due to fair-value adjustments and sundry receipts. vi) Gains on disposal of property, plant and equipment The variance is due to sale of assets having exceeded expectations. vii) Fines The variance is due to a change in the application of an existing accounting standard. viii) Government grants and subsidies The variance is due to delays in the implementation of projects, community consultation, tender objections, environmental issues, and cancellation due to poor performance and liquidations.

172 INTEGRATED Annual Report | 2013/14 41. f NO o r

41.2 BUDGET INFORMATION t TES T h e

year 41.2.2 41.2.3 41.2.4 Explanation ofvariancesgreater than5%:Finalbudgetandactualamounts(continued) O

e Statement offinancialperformance(continued) Cash flowstatement Capital expenditure Expenditur vii) vi) v) iv) iii) ii) i) ix) ii) i) i) viii) vii) vi) v) iv) iii) ii) nd

e Losses ondisposalofproperty The variancesare duetopayment tobeneficiariesdeferr Grants andsubsidiespaid V Finance costs D on actualfineincome received. V Collection costs The varianceisduetoachangeinaccountingstandar I The varianceismainlyduetothetimetakenfillvacancies,aswellinter Employee-related costs The varianceisduetoactualamountsbeinglessthanbudgeted. P The varianceisduetounanticipatedlossesonassets. projects. The varianceisduetoareview oftheusefullivesassets,anddelaysinimplementation N held byvariousfinancialinstitutionsforthe repayment ofsuchbondsuponmaturity(refer above). payment. Theseaccumulatedamountshavenowbeenpaidintoguaranteedinvestmentaccounts The difference represents theamountsetasideforrepayment ofbondsasaonce-off bullet guaranteed investmentfundfortherepayment ofbonds. The varianceresulted from thereclassification ofinvestmentsfrom short-termtolong-termina N Compliance andAuxiliaryServices V City Manager V City V Tourism, EventsandMarketing V Social V Finance consequent non-deliveryofmaterials. V Economic, Environmental andSpatial V Community Services V over tonewfinancialyear. strikes experiencedbyserviceproviders, protest actionsandtenderappeals. participation nolongerbeingnecessary. protest actionsandtenderappeals. outstanding work. H mpairment costs d 30Jun ublic contributions ariance largelyduetosavingsrealised onunutilisedloanfacilities. ariance isduetolower-than-anticipated commissionpaidtothecollectingagency ariance due to delay in delivery and internal r ariance duetodelayindeliveryandinternal ariance duetodelaysintheimplementationofprojects asar ariance duetopoor performanceofcontractor andtenderers’ non-performance. ariance duetounder-performance ofvendorand non-delivery ofequipment. ariance duetodelaysintheimplementation ofprojects as ar ariance due ariance duetodelaysintheimplementationofprojects asar ariance duetodelaysindelivery, pr epr et cashfr et cashfr E C H eciation andamortisationexpenses ealth D e evelopment andEarlyChildhood ON om (used)financing om (used)investing (continued) e 2014(continued) to delays in the implementation of projects, strikes experienced by vendors, and S O L ID , plantandequipment ATE oject fundingnotapproved, andfailure ofcontractortocomplete P D lanning INTEGRATED A INTEGRATED D F evelopment IN estructuring. A N ds regarding thetraffic fineincome. nn C ed asavirement ofoutstanding information. u a I l R AL STATEME esult oflocalcommunityparticipation, esult oflocalcommunityparticipation, esult oftechnicalissues,andthe City’s e po rt |2 013/14 nal appointments. U nderspent fundsr , whichisbased N TS

olled 173

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 41. BUDGET INFORMATION (continued) 41.2 Explanation of variances greater than 5%: Final budget and actual amounts (continued) 41.2.4 Capital expenditure (continued) ix) Transport for Cape Town* Variance due to industrial action, negotiation processes with transport operators, compliance issues with supply chain management policy, liquidation of service providers, and cancellation due to poor performance. x) Human Settlements Variance due to delay in implementation of projects, poor performance, liquidation of contractors and community actions. xi) Water and Sanitation Variance due to delay in implementation of projects and delivery of equipment, inclement weather conditions, tender appeals, financial distress of tenderers, environmental issues, and lack of access to site. xii) Cape Town Electricity Variance due to delay in implementation of projects, provisions of funding, poor performance of contractor, and community protests regarding the housing allocation lists. xiii) Subsidiaries The capital expenditure projects were 95% completed or in progress as at yearend. The variances relate mainly to savings on completed projects as well as projects in progress as at yearend. *Previously known as Transport, Roads and Stormwater.

42. UNAUTHORISED, IRREGULAR, FRUITLESS AND WASTEFUL EXPENDITURE, AND MATERIAL LOSSES Municipality of Economic entity Cape Town 2014 2013 2014 2013 R’000 R’000 R’000 R’000 42.1 Irregular expenditure Opening balance – 122 568 – 122 568 Expenditure – supply chain management (SCM) regulations (see incidents below) 45 1 465 45 1 465 Regularised and ratified – (124 033) – (124 033) Closing balance 45 – 45 –

Incidents • Declaration of interest of suppliers in the – 1 450 – 1 450 employ of the state • Business conducted with one staff member – 15 – 15 • Business conducted with a supplier of whom 45 – 45 – a director was in service of the state Incidents for the year 45 1 465 45 1 465 42.2 Unauthorised, fruitless and wasteful expenditure Opening balance 146 288 – – Expenditure – current year 294 – 294 – Amount recovered (146) – – – Certified as irrecoverable by Council – (142) – – Closing balance 294 146 294 –

Incidents Proceedings Fine: non-compliance Awaiting condonement 50 – 50 – to Act by Council Fine: non-compliance Awaiting condonement 12 – 12 12 to Act by Council ICSID: Payments not Awaiting condonement 232 – 232 – in accordance with by Council Agreement – due to exchange rate fluctuations Incidents for the year 294 176 294 168

174 INTEGRATED Annual Report | 2013/14 42. f NO 43. o r

43.2 43.1

UNAUTHORISED, IRREGULAR,FRUITLESSANDWASTEFUL EXPENDITURE,MA LOSSES COMMITMENTS 42.3 t TES T h e

year Operating leasecommitments Capital commitments 43.2.2 43.2.1 been restated from R1,77 from restated billion. been 2013The of amount R1,77 comparative has billion TOTAL Commitments inrespect of capitalexpenditur Approved andcontractedfor: Material losses to R411,42 (2013: million million). R400,35 amounted losses production vandalism. and The theft 10,49% (2013: 9,31%). of result are the losses These I Electricity losses (2013: million R90,30 million). R89,03 to amounted losses production The loss. apparent an which constitutes inefficiencies, todue metering 10,08% (2013: 7,6%). are predominantly losses These I Water losses n th n th O Community I nfrastructur ther (continued) e year under review, the reticulation losses were were review, losses under e year reticulation the e year under review, the energy losses were were losses review, under e year energy the O

e The Entityaslessor The Entityaslessee Buildings Receivable afterfiveyears Receivable withintwotofiveyears Receivable withinoneyear cancellable operatingleases Future minimumleaseincomeundernon- options availableincertaininstances. of betweenoneandfouryears,withrenewal premises are contracted for remaining periods R49,21 million (2013: R41,11million).Leased an expenseduringtheperiodamountto Minimum leasepaymentsrecognised as Vehicles andotherequipment Land andbuildings non-cancellable operatingleases Future minimumleasepayments under lease has been an increase of R2,46 million in million current-year income. of R2,46 increase an has been lease of the term overthe basis a straight-line on leases in operating of charging escalations the impact The in R21,62 (2013: million R13,55 cost. at their tenants, by the are maintained million). properties The leases. operating under properties lets Entity The nd T vestment properties have been disposed of since the date of the statement of financial performance. of financial of datestatement since of the disposed have been properties vestment P P P P ayable withintwotofiveyears ayable withinoneyear ayable withintwotofiveyears ayable withinoneyear e H d 30Jun e E C ON e 2014(continued) S O L ID ATE e D INTEGRATED A INTEGRATED F 1 7 7 9 7 0 1770113 3078105 1772894 3 119075 0 9 9 8 0 9 1090589 2203693 1090589 2 203693 IN E 3 7 0 6 3 9 212900 234492 206660 230 172 4 8 4 8 4 8 142085 147186 142085 147 186 4 8 6 2 4 8 167329 245987 167329 245 987 822 865 P conomic 3444 0 58452827 65884 48507 63 484 19 502 0974 8 09748489 40957 48 489 40 957 40 221 92 576 2579 4 25791140 92 517 91140 92 517 38 017 ro 2 204 A R’000 perty rental income earned during the year was was year duringthe earned income rental perty 2014 736 514 222 N nn C u

a entity I l R AL STATEME 9 6 8 9 588384 781895 591 165 6082 2 17988 21422 16 068 20422422074 2204 22 074 6453 1 26 415 38017 26 415 8494 2 48 489 40221 48 489 6209 7 66240 92576 66 240 e po R’000 2013 rt – – 736 – |2 013/14 M unicip R’000 C 2014 514 222 ape TERIAL T ality N own TS

of R’000 2013

N – – – o 175

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued)

44. ADDITIONAL DISCLOSURES 44.1 Municipal Finance Management Act 44.1.1 Section 124 Disclosure concerning councillors’ municipal accounts in arrears As at 30 June 2014, the following councillor was in arrears for rates and services: Outstanding Outstanding Total <90 days >90 days R’000 R’000 R’000 As at 30 June 2014 Madikane, B 208 – 208 Balance outstanding 208 – 208 During the reporting period, the following councillors were in arrears for more than 90 days. Gqada, T Mamkeli, S Hassiem, W Jordaan, C Lungiswa, J Van der Merwe, C Mabandla, M As at 30 June 2013, the following councillor was in arrears for rates and services: Outstanding Outstanding Total <90 days >90 days R’000 R’000 R’000 As at 30 June 2013 Basson, J 10 9 1 Balance was paid in full on 22 July 2013 10 9 1 During the the 2012/13 financial period, the following councillors were in arrears for more than 90 days. Basson, J Ntsodo, A Bryant, DW Smith, JP Cottee, D Williams, A

44.1.2 Included in the debtors’ arrears is an amount of R1,62 million (2013: R1,56 million) outstanding for more than 120 days, owed by the representative political parties to the Entity. 44.1.3 Section 125 Other compulsory disclosures

South Pay-as- African Local you-earn Government (PAYE) Association and (SALGA) Audit Unemployment Pension and contributions fees Insurance Fund medical aid R’000 R’000 R’000 R’000 As at 30 June 2014 Opening balance – 182 84 887 172 627 Subscriptions/fees 10 400 15 029 1 077 710 2 244 211 Amount paid – current year (10 400) (14 923) (989 747) (2 052 584) Amount paid – previous years – (182) (84 887) (172 627) Balance unpaid (included in payables) – 106 87 963 191 627

As at 30 June 2013 Opening balance – 263 62 543 155 305 Subscriptions/fees 9 800 16 189 1 017 760 2 004 302 Amount paid – current year (9 800) (16 007) (932 873) (1 831 676) Amount paid – previous years – (263) (62 543) (155 304) Balance unpaid (included in payables) – 182 84 887 172 627

176 INTEGRATED Annual Report | 2013/14 44. f NO o r

44.2

ADDITIONAL DISCLOSURES t TES T h e

year SUPPLY CHAINMANAGEMENTREGULA 44.2.2 breaches. technical minor of procedure, or correction official the to follow impossible or is impractical it where circumstances objects, provider, art-historical one only from availability procurements, 1671130766 92911 of emergency criteria stipulated of the 219 869 in terms Committee SCM Adjudication Bid by the assessed being entails process This 43670 1135 SCM the and regulations policy. O 873 Accounting by the considered deviations All 92911 Accounting Officer and noted byCouncil Total amountapproved bythe 43670 D O Supply anddeliveryofplantequipment U Extension ofcontract U I Appointment ofconsultants Incidents budget. and of costs availability the and cost to controls unit such as principle, subject Council. Accountingby the approved have been below listed as incurred O Accounting by the approved to be needs SCM from policy any deviation regulations, I 44.2.1 nformation technologyupgrade n te eviations lessthanR200000 pgrade ofr pgrade ofelectricityservices ther ffi ffi cer are processed in terms of the of in the terms cer are processed bycer noted Council. and expenses The rms of section 36 of the municipal SCM municipal of the 36 of section rms O

e SCM breaches Deviations Ratification ofminorbr ratified Total amount regularised and Regularisation ofbreaches nd D T ev oad infrastructure e iations have been approved in approved haveiations been H d 30Jun E C O ffi ON cer and noted by noted cer and e 2014(continued) (continued) S eaches O L ID TIONS ATE E D 6 1 494202634944 260216 300 442 34944 260 216 conomic 36724951 3 214975 13637 104798 95 945 214975 64228 13 637 38 657 104798 57 078 64 228 4016937 14 091 4017571 14 091 INTEGRATED A INTEGRATED R’000 F 2014 IN 634 – A

entity N 3 8 0 4 335985 154314 300442 91239 335 985 158 767 192355 57078 192 355 nn C R’000 2013 u 8 867484 38657 484 a I l R AL STATEME e po rt M |2 unicip R’000 C 2014 013/14 ape – 634 634 – – T ality own

of R’000 N 2013

TS –

177

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 44. ADDITIONAL DISCLOSURES (continued) 44.2.3 Bids awarded to family of employees in service of the state In terms of section 45 of the municipal SCM regulation, any award above R2 000 to family of employees in the service of the state must be disclosed in the annual financial statements. The following is a list as recorded in the declaration-of-interest form: Municipality of Economic entity Cape Town 2014 2013 2014 2013 R’000 R’000 R’000 R’000 Connected person Position held with state Adams, C Clerk 25 – 25 – Agulhas, M Artisan 1 634 – 1 634 – Booisen, C Operational Supervisor: Driver 356 – 356 – Booysen, P* Clerk – 631 – 631 Buitendag, G Principal Professional Officer 9 6 761 9 6 761 Cedras, A Senior Superintendent – 664 – 664 Chetty, F Legal Advisor 7 – 7 – Connor, C* Head: COID – 123 – 123 Daniels, L Senior Foreman – 13 887 – 13 887 Davids, M Operational Supervisor: Driver 135 – 135 – De Vries, S Superintendent – 153 – 153 Diedericks, R Technician 260 – 260 – Du Toit, J SCM Assistant Buyer 604 595 604 595 Ebrahim, Y Head: District 5 953 – 953 – Elloker, A Senior Professional Officer 320 – 320 – Fourie, S HoD: Economic Development and Tourism 46 5 – – Gaya, M Operational Supervisor/Driver – 9 – 9 Gordon, C Clerk 506 – 506 – Hattingh, PM SCM Administrative Officer 1 765 184 1 765 184 Henderson, C Teacher 205 – 205 – Ishmail, E Manager: Valuation Data and Systems 285 5 515 285 5 515 Jacobs, E Senior Clerk 27 958 – 27 958 – Jacobs, MS Clerk – 209 – 209 Jaffar, R Administrative Officer 89 – 89 – Johns, KM Clerk – 5 – 5 Koning, G Enrolled Nurse – 38 – 38 Kupiso, NG Water Pollution Control Inspector – 122 – 122 Lategan, J Clerk – 14 – 14 Le Fleur, C Administrative Officer 71 – 71 – Louis, D Clerk – 279 – 279 Mama, X Head: Area Manager – 375 – 375 Merile, SS Operator: Small Plant – 1 927 – 1 927 Meyer, T Educator: Western Cape Education Department 4 872 – – – Mjali, M Emergency Centre Officer 4 – 4 – Monk, FJ Subcouncil Manager – 676 – 676 Mshweshwe, MC Statutory Compliance Specialist 292 304 292 304 Paulse, O Co-coordinator: Housing Rental Stock 266 – 266 – Platzky, L Deputy Director-General: Strategic Programmes WC Government Department of the Premier 23 – – – Poole, N Senior Clerk 293 – 293 – Ritter, T Senior Clerk 102 – 102 – Sammy, MF Administrative Officer 15 40 15 40 Scholtz, LM Secretary 1 783 905 1 783 905 Siyabulela, M Senior Clerk 199 – 199 – Steyn, D Head: Supplier Management 332 – 332 – Steyn, T Senior Professional Officer 3 554 – 3 554 – Thorpe, M SCM Assistant Buyer – 128 – 128 Trom, F Worker – 7 – 7 Votersen, MF Head: Finance Parks – 559 – 559 Webster, L Senior Clerk 82 – 82 – Willemse, S Administrative Officer 1 541 – 1 541 – Wyngaard, R SCM Administrative Officer – Tenders 498 – 498 – Total 49 084 34 115 44 143 34 110

* These officials resigned from the City of Cape Town prior to the reporting period.

178 INTEGRATED Annual Report | 2013/14 45. f NO o r

Cash andcashequivalents O Receivables Long-term receivables 2013 I Cash andcashequivalents O P Receivables The level. to acceptable an Entity the across of risks mitigation The activities. and policies Borrowings 2013 Long-term receivables P I 2014 Financial assets position: of financial statement items the in the to following applied was for financial instruments accounting policy The basis. aquarterly on toCommittee Audit the are supplied meetings Committee Management of Risk reports and all documentation to regard management, risk with responsibilities and role To their with to Committee comply Audit requirements. the enable regulatory and practices best keepwith pace that they ( City’s the integrated management risk for overseeing is responsible Committee Management Risk Entity’s The statements. financial these throughout are included disclosures quantitative Further of capital. management Entity’s the and managing risk, and for measuring processes and policies its risks, above to of the each exposure Entity’s the about information presents note This operations. Entity’s of the course normal in the arises risk credit to and currency,rate, interest liquidity Exposure Borrowings 2014 Financial liabilities FINANCIAL RISKMANAGEMENT nvestments nvestments t ayables ayables ther r ther r TES T h e

year eceivables eceivables O

e nd T e H d 30Jun E C I RM p RM ON e 2014(continued) olicies were established to ensure a structured approach to the identification and and to identification the approach to ensure astructured established were olicies S O L ID ATE D INTEGRATED A INTEGRATED F I RM p RM 3 0 3 4 3070113085511 13 067051 4534245 8 532806 9 7 0 6 0 4 4907440 4907440 1109766 3 797674 4 170933 7 7 1 2 3194013236486 13 189400 5314123 7 875277 1 8 3 8 5 7 2652774 2652774 1337585 1 315189 4 308354 1 701641 Amortised IN 301 016 122 211 140 972 426 131 123 962 olicies and systems are reviewed regularly to ensure regularly are reviewed systems and olicies A R’000 cost N nn C u 118161 0 1 11929170 11108116 11 108116 088911 8 0 11467030 10888901 10 888901 a 3 736775 7 4 7 4 8192395 7371341 7 371341 3 838742 5 5 5 5 7628288 7050159 7 050159 I 2 7 6 5 3583911 3565451 3 424479 Amortised 7 3 7 7 5725265 5678179 3 976538 l R AL STATEME e po R’000 R’000 value cost Fair rt |2 0 1 301016 301016 – 7 3 4170933 4170933 – 2 1 122211 122211 – 2 3 426131 426131 – 0 5 4308354 4308354 – 2 6 123962 123962 – 013/14 3 7 3736775 3 736775 3 4 3838742 3 838742 carrying carrying amount amount R’000 R’000 Total Total N TS R’000 value R’000 value

Fair Fair I RM 179 )

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 45. FINANCIAL RISK MANAGEMENT (continued) 45.1 Fair values The table below analyses financial instruments carried at fair value at the end of the reporting period, by level of fair-value hierarchy. The different levels are based on the extent to which quoted prices are used in the calculation of the fair value of the financial instruments, and have been defined as follows: Level 1: Fair values are based on quoted market prices (unadjusted) in active markets for an identical instrument. Level 2: Fair values are calculated using valuation techniques based on observable inputs, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using quoted market prices in active markets for similar instruments, quoted prices for identical or similar instruments in markets that are considered less than active, or other valuation techniques where all significant inputs are directly or indirectly observable from market data. Level 3: Fair values are based on valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes inputs not based on observable data, and the unobservable inputs have a significant effect on the instrument’s valuation. Also, this category includes instruments that are valued based on quoted prices for similar instruments, where significant unobservable adjustments or assumptions are required to reflect differences between the instruments. Level 1 Level 2 Level 3 Total R’000 R’000 R’000 R’000 Financial assets 2014 Investments 3 204 138 772 400 – 3 976 538 Cash and cash equivalents – 1 337 585 – 1 337 585 3 204 138 2 109 985 – 5 314 123 2013 Investments 2 456 013 968 466 – 3 424 479 Cash and cash equivalents – 1 109 766 – 1 109 766 2 456 013 2 078 232 – 4 534 245 45.2 Liquidity risk Liquidity risk is the risk of the Entity not being able to meet its obligations as they fall due. The Entity’s approach to managing liquidity risk is to ensure that sufficient liquidity is available to meet its liabilities when due, without incurring unacceptable losses or risking damage to the Entity’s reputation. The Entity ensures that it has sufficient cash on demand to meet expected operating expenses through the use of cash flow forecasts. An average of 96,35% (2013: 95,06%) of receivable (own billed) income is realised within 30 days after the due date, and payables are settled within 30 days of invoice. National and provincial grant funding is received in terms of the Division of Revenue Act (DoRA). The following are contractual liabilities of which interest is included in borrowings: Up to 1 year 1 – 5 years >5 years Total R’000 R’000 R’000 R’000 2014 Liabilities Borrowings 1 120 292 3 798 365 8 728 367 13 647 024 Capital repayments 370 075 1 069 521 5 610 563 7 050 159 Interest 750 217 2 728 844 3 117 804 6 596 865 Payables 3 838 742 – – 3 838 742 Payables 3 148 906 – – 3 148 906 Sundry creditors 689 836 – – 689 836

4 959 034 3 798 365 8 728 367 17 485 766

180 INTEGRATED Annual Report | 2013/14 45. f NO o r

45.3 45.4

FINANCIAL RISKMANAGEMENT t TES T h e

year Credit risk Capital management risk asat30Junewasfollows: The carryingamountoffinancialassets represents the maximumcredit exposure. Themaximumexposure tocredit cash equivalents. their contractualobligations,andarisesprincipallyfrom theEntity’s investments,loans,receivables, andcash Cr interest-bearing loansandborrowings, payables,lessinvestments. capital-intensive industry The Entitymonitorscapitalusingagearingratio,whichisnet debt,dividedbytotalcapital,plusnetdebt. the Entity’s funding requirements, including capital expenditure, toensure thattheEntityremains financiallysound. The primaryobjectiveofmanagingtheEntity’s capitalistoseeitthatther such relief. ongoing customerrelationship strategyaswelltoenabletheCityofCapeTown tomakeadequateprovision for Consumer debtors with a demonstrable inability to pay are encouraged to apply for potential indigent status as an experience. Additionalinformationrelating totheanalysisofreceivables isgiveninnotes8and9. are provided forbasedonestimatedirrecoverable amounts,determinedbyreference up to365 days topastdefault accounts aftertheduedate.TheEntityhasprovided fullyforallreceivables outstandingover365days.Receivables electricity meters. encouraging residents toinstall watermanagementdevicesthatcontrol waterflowtohouseholds,aswellprepaid for managingandmeasuringtheriskduringyearunderreview. TheEntity’s strategyformanagingitsriskincludes creditworthiness. There were nomaterialchangesintheexposure tocredit riskanditsobjectives,policiesprocesses constitutional mandatetoprovide allitsresidents withbasicminimumservices,withoutrecourse toanassessmentof policy inplace,andtheexposure tocredit riskismonitored onanongoingbasis. TheEntityiscompelledintermsofits Receivables are amountsowing byconsumers,andare presented netofimpairment losses.TheEntityhasacredit risk Receivables of securitywhengrantingloans.Allowancesforimpairmentare madeincertaininstances. interest ratesandrepayments are clearlydefinedand,where appropriate, theEntityobtainscertainsuitableforms Loans are grantedandmanaged inaccordance withpoliciesandregulations as setoutinnote6.Theassociated Long-term receivables Consequently, theEntitydoesnotconsiderthere tobeanysignificantexposure tocredit risk. sound credit rating, and within specific guidelines set in accordance with Council’s approved investment policy. 4461926 The Entity limits its exposure to credit risk by investing with onlyreputable financial institutions thathavea Investments andcashequivalents 4726949 4471949 Total 4734485 Cash andcashequivalents–seenote10 Receivables andotherreceivables –seenotes8and9 Long-term receivables –seenote6 I credit periodonservicesrendered is30daysfrom dateofinvoice. amounts ofthetenlargestdebtorsrepresent 1,00%(2013:1,20%)ofthetotaloutstandingbalance.Theaverage allowance for impairment that represents its estimate of anticipated losses in respect ofreceivables. Theoutstanding number ofconsumersandnotconcentratedinanyparticularsectororgeographicarea. TheEntityestablishesan of financialperformance.TheEntityhasnosignificantconcentration credit risk,withexposure spread overalarge The Entity’s maximumexposure tocredit riskisrepresented bythecarryingvalueofeach financialassetinthestatement nvestments edit riskisthe risk of financial losstothe Entityif customers orcounterpartiestofinancial instruments failto meet O

e nd T e H d 30Jun E C I n certaininstances,adepositisr ON , agearingratioof50%orlesscanbeconsidered reasonable. e 2014(continued) S O (continued) L ID ATE equired fornewserviceconnections, servingasaguarantee. D INTEGRATED A INTEGRATED F 319401 6 5 2756912879784 12795649 13067051 13 189400 5 7 0 4 6 5 4730196 2266559 4907440 3565451 2 652774 5678179 3565451 5 678179 IN E 123 962 conomic A R’000 2014 I N nter nn C est is raised at prime plus 1% on any unpaid est israisedatprimeplus1%onanyunpaid u

entity a I l R AL STATEME 2 1 2 6 122211 123962 122 211 e issufficient cashavailabletosupport e po R’000 2013 rt |2 013/14 M I ncluded innetdebtar unicip R’000 C 2014 ape T ality N own TS

of R’000 2013

I n a e 181

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 45. FINANCIAL RISK MANAGEMENT (continued) 45.5 Currency risk The Entity is exposed to foreign-currency risk through the importation of goods and services, either directly or indirectly, through the award of contracts to local importers. The Entity manages any material direct exposure to foreign-currency risk by entering into forward exchange contracts. The Entity manages its indirect exposure by requiring the local importer to take out a forward exchange contract at the time of procurement, in order to predetermine the Rand value of the contracted goods or services. The Entity was not a direct party to any outstanding forward exchange contracts at the reporting date. The movement in the currency was not material to the Entity’s procurement and, consequently, is not elaborated on any further. 45.6 Market risk Market risk is the risk of changes in market prices, such as foreign-exchange rates and interest rates, affecting the Entity’s income or the value of its financial instrument holdings. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return on the risk. The effective rates on financial instruments as at 30 June 2014 are as follows: Maturity of interest-bearing assets/liabilities Weighted 1 year 1 – 5 >5 interest rate or less years years Total % R’000 R’000 R’000 R’000 Financial assets Investments 6,29 3 959 491 1 498 818 1 557 455 7 015 764 Cash and cash equivalents 5,84 1 317 514 – – 1 317 514 Total financial assets 5 277 005 1 498 818 1 557 455 8 333 278 Financial liabilities Borrowings 9,77 370 075 1 069 521 5 610 563 7 050 159 Total financial liabilities 370 075 1 069 521 5 610 563 7 050 159

Interest rate sensitivity analysis Financial assets As at 30 June 2014, if the weighted interest rate at that date had been 100 basis points higher, with all other variables held constant, the fair-value impact on the statement of financial performance would have been R76,82 million, with the opposite effect if the interest rate had been 100 basis points lower. Financial liabilities As at 30 June 2014, if the interest rate at that date had been 100 basis points higher or lower, with all the other variables held constant, the fair-value liability would have no impact, as all borrowings are at a fixed interest rate.

182 INTEGRATED Annual Report | 2013/14 46. f NO o r

46.2 46.1

PRIOR-YEAR ADJUSTMENTS t TES T h e

year Correction oferr Reclassification Surplus forthe year Total expenditure General expenses Finance costs Total revenue P O Finance income Statement offinancialperformance Employee-related costs Surplus fortheyear I Finance income Statement offinancialperformance Cash andcashequivalents Accumulated surplus O P O I Total revenue P General expenses Grants andsubsidiespaid D Finance costs Total expenditure After furtherconsultationandresearch, itwasfound thattheWorld Reclassification ofcertainlineitemswasmadeasindicatedbelow. affected bytheprior-year adjustments. P definition ofasubsidiaryintermsGRA P Statement offinancialposition 2013 P Statement offinancialposition 2013 ntangible assets ntangible assets r ayables fr r r r r epr ther income ther income ther r operty rates operty rates esented beloware thoseitemscontainedinthestatementsoffinancialpositionandperformancethathavebeen operty, plantandequipment operty, plantandequipment eciation andamortisationexpenses O

eceivables e nd T om exchangetransactions e H d 30Jun E C or ON e 2014(continued) S O L ID P 6. ATE Note 20 15 10 25 24 32 29 26 36 35 33 D 9 4 1 INTEGRATED A INTEGRATED F 27 521557 24 043641 86429(3 0)(3)27992605 20 282008 (535) (631109) 28 624249 3 477916 4 547070 4 910631 5 6 (85057) 5 159663 5 7 0 355 3547265 (3515) 505 3 550275 1 641994 7 492589 previously IN reported 2 0 631109 304 284 125 500 5 1 499(6 640678 (56) 84919 555 815 5 1 138 751 713 3 8 (505) 730 788 94 857 A Note ’0 ’0 ’0 R’000 R’000 R’000 R’000 635372553574247 505 3573742 36 37914(0)728669 (505) 729174 33 651152(507 5076445 (85057) 5161502 26 25 457288 5 632187 84959 547228 24 As N 4 84189(3 0)27800770 (631 109) 28431879 1 nn C classification u 23 919728 27 363454 a 3 443726 I D previously l R AL STATEME reported E esign Capital2014doesnotmeetthe 742 983 2 0 3 0 756609 631109 125 500 M conomic e po unicipality ’0 ’0 R’000 R’000 R’000 rt Re- As 285 3475041 (2875) – 5)27521501 (56) – 1 24046460 2819 – 15 304159 (125) – 285 20279133 (2875) – 96 4546094 (976) 4907440 (3191) – – 0 103357 8500 – 4)1641953 (41) 7490464 (2125) – – |2 lsiiainRestated classification 013/14

entity Correction ferrRestated of error

of C Re- 8743081 98 23919728 – 3443 726 – 27363454 – ape 756609 – 5074606 – 751851 – 730283 – N T own TS

183

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 46. PRIOR-YEAR ADJUSTMENTS (continued) 46.3 Changes in accounting estimates The annual review of the useful lives of assets resulted in a decrease of R158,04 million (2013: R24,90 million) in the depreciation charge to the statement of financial performance. It is impracticable to determine the estimated effect of these changes on future periods. 46.4 Changes in accounting policy On 1 July 2013, the City of Cape Town changed its accounting policy with respect to borrowing costs from capitalisation against qualifying assets, to expensing all borrowing costs. The City believes that this policy provides more relevant information and will assist users in better understanding financial information, as the City does not incur borrowing costs that are directly attributable to the acquisition, construction or production of qualifying assets. The City has therefore never capitalised any borrowing costs, and the change in policy, which is applied prospectively, has no financial impact. Furthermore, the accounting policy of the City has been changed to align with the disclosure requirements in terms of GRAP 100 for assets held-for-sale to be reclassified as property, plant and equipment.

47. RETIREMENT BENEFIT INFORMATION The Entity makes provision for post-retirement benefits to eligible councillors and employees who belong to different pension schemes. These funds are governed by the Pension Funds Act (Act 24 of 1956) and include both defined-benefit (DB) and defined-contribution (DC) schemes. Contributions of R804,83 million (2013: R723,66 million) to the DB and DC structures are expensed as incurred during the year under review. These schemes are subject to a triannual, biannual or annual actuarial valuation, as set out below. 47.1 Defined-benefit schemes Cape Joint Pension Fund (multi-employer fund) The DB section is a multi-employer plan, and the contribution rate payable is 27%, i.e. 9% by the members and 18% by their councils. The fund was certified by the actuary as being in a sound financial condition as at 30 June 2013. The valuation indicates a R10 million deficit actuarial esult,r and is 99,7% funded at the financial yearend. The City of Cape Town is included among the local authorities that contribute to the Cape Joint Pension Fund. Included in the rules of the fund is a proviso that the assets provide a minimum return of 5,5% per annum, failing which the local authorities associated with the fund are required to fund the shortfall in direct proportion to the level of contributions made. There have been significant amendments to the pension fund regulations, notably rule 17(5), in terms of which the fund is managing its sustainability risk. South African Local Authorities (SALA) Pension Fund (multi-employer fund) The fund is a DB plan and is financially sound.I t was 100% funded as at 1 July 2013, and had remained stable since the previous valuation date. 47.2 Defined-contribution schemes Cape Joint Pension Fund (multi-employer fund) This scheme was established to accommodate the unique characteristics of contract employees and cost-to- company employees. All existing members were given the option to transfer to the DC plan before 1 July 2003. Notwithstanding the actuary’s recommendation to eliminate a slight shortfall, the nature of assets is suitable for the fund. The fund was certified by the actuary as being in a sound financial condition as at 30 June 2013. The valuation disclosed funding of 99.8%. Cape Retirement Fund for Local Authorities (multi-employer fund) The contribution rate paid by the members (9%) and their councils (18%) is sufficient to fund the benefits accruing from the fund in future. The actuary certified the fund, a DC plan, as being in a sound financial position as at 30 June 2013. Municipal Councillors’ Pension Fund (multi-employer fund) The Municipal Councillors’ Pension Fund operates as a DC scheme. The contribution rate paid by the members (13,75%) and their councils (15%) is allocated between the cost of risk benefits deriving from the administration of the fund and members’ retirement benefits. The fund was certified by the actuary as being technically not financially sound with a funding level of 99,5% as at 30 June 2012. National Fund for Municipal Workers (multi-employer fund) The retirement and pension funds are both DC schemes. According to the actuary’s certification, the fund endures to meet its liabilities. As at 30 June 2013, the valuation disclosed a funding level fluctuating around 100% due to timing differences, a slight mismatch of assets and liabilities, and processing errors.

184 INTEGRATED Annual Report | 2013/14 47. f NO o r

47.3 47.4

RETIREMENT BENEFITINFORMATION t TES T h e

year Post-employment definedbenefits Defined-benefit anddefined-contributionscheme 47.4.1 N P N Actual employercontribution– Actual employercontribution– Key financialassumptions Actuarial surplus Assets valuedatmarketvalue Total liabilities P P Membership asat30June2013 P I is dueby30June2015. performed at 30 June2012,which certified itasbeingin afinanciallysoundposition.Thenextstatutoryvaluation audit opinion for the audit of finances for the year ended 30 June 2013. The actuarial valuation of the fund was The CapeMunicipal Cape MunicipalPensionFund the employeeserviceincurrent orpriorperiods. to payfurthercontributionsifthefunddoesnotholdsuf The Convenco Cape T performed basedonthe30June2011auditedfinancialstatements,oncetheybecomesavailable. 30 June2008,whenthefundwascertifiedasbeinginafinanciallysoundposition.Astatutoryvaluationwillbe The SAMW South AfricanMunicipalWorkers Union(SAMWU)NationalProvident Fund(multi-employerfund) n-service members ast-service position– ast-service position– ensioners ormal r et discountrate: O

own International ConventionCentreown International CompanyProprietary Limited(Convenco)Provident Fund e Healthcare arrangement assumptions and willcontinue. cross-subsidisation from in-servicememberstoretiree memberswithinthemedicalschemeare sustainable the exceptionofinflationaryadjustments. in theaccountingpolicy, andthatthelevelofbenefitscontributions would remain unchanged, with For pastserviceofin-serviceandr Family profile wasbasedonactualdataand, therefore, noassumptions hadtobemade. Family profile of CapeTown willremain ontheemployer’s healthcare arrangements. I Continuation ofmembership their spouses. I I 30 June 2014 constituted9822(2013:10398)in-servicemembers and6525(2013:492)pensioners. The membersofmedicalaidschemesentitledtoapost-employment medicalschemesubsidyasat the projected unitcredit method. determined present valueofpost-retirement medical-aidemployercontributionsonanaccrualbasis,using t isassumedthat100%ofin-service membersentitledtoapost-r t isfurtherassumedthatthesubsidywillcontinueuntillast survivor’ t wasassumedthattheemployer’ etirement age nd T U e

H N d 30Jun P ational r ovident Fundoperatesasa E C

P P ension Fundoperatesasbotha ost-r r D D P e-retirement ON r C section B section ovident Fundisa e etirement 2014(continued) S D D C section B section O L ID s healthcare arrangementsandsubsidypolicywouldremain asoutlined etired employees,theEntity recognises andprovides fortheactuarially D D (continued) ATE C scheme.Thelastactuarialvaluationofthefundwasperformedat C scheme.Theeconomicentityhasnolegalorconstructiveobligations I mplicit inthisappr D D B and INTEGRATED A INTEGRATED F ficient assetstopayallemployeesthebenefits relatingto IN D C scheme.Thefundhasbeenawar A N nn C oach istheassumptionthatcurrent levelsof u a I l R AL STATEME etirement subsidyretiring from theCity 47841510603 4125 14 728 e 3 0 9331 301 5 096 9 632 po oa BscinDCsection DBsection Total rt s death,foreligiblemembersand |2 013/14 R’million 0yas60years 60 years 01910109 10096 10 109 10 096 18,00 20,25 3739 6 357 3 739 2 1272 3 824 2014 2014 ,01,50 0,50 1,50 0,50 % ded anunqualified – N TS R’million 18,00 20,25 6 357 2013 2013

% – 185

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 47. RETIREMENT BENEFIT INFORMATION (continued) Plan assets Currently, no long-term assets are set aside off-balance sheet in respect of the employer’s post-employment healthcare liability. Discount rate The fund benefit liability to the City of Cape Town as at 30 June 2014 has been discounted at a rate determined on the basis of the yield of 9,30% (2013: 9,22%) per annum on government bonds. 47.4.2 Retirement pension benefits For past service of employees and retired employees, the Entity recognises and provides for the actuarially determined present value of post-retirement revenue pensions on an accrual basis, using the projected unit credit method. The number of employees who were eligible for a post-retirement pension as at 30 June 2014 was 37 (2013: 46) in-service employees and 103 (2013: 109) pensioners. Plan assets Currently, no long-term assets are set aside off-balance sheet in respect of the employer’s post-employment retirement pension liability. Discount rate The fund benefit liability to the Entity as at 30 June 2014 has been discounted at a 8,60% (2013: 9,22%) per-annum rate determined on the basis of the market yields on government bonds.

Post-retirement scheme defined-benefit obligations 2014 2013 Health- Retirement Health- Retirement care pension care pension benefits benefits Total benefits benefits Total R’000 R’000 R’000 R’000 R’000 R’000 Present value of unfunded liability 5 211 674 33 306 5 244 980 3 882 906 56 774 3 939 680 Unrecognised actuarial gains –––––– Net liability in statement of financial position 5 211 674 33 306 5 244 980 3 882 906 56 774 3 939 680

Interest costs 358 004 5 235 363 239 279 834 1 286 281 120 Service costs 97 345 2 021 99 366 92 359 462 92 821 Actuarial losses/(gains) recognised 1 027 156 (29 518) 997 638 83 461 39 598 123 059 Total included in statement of financial performance 1 482 505 (22 262) 1 460 243 455 654 41 346 497 000

Balance at the beginning of the year 3 882 906 56 774 3 939 680 3 566 435 17 004 3 583 439 Net expense recognised in statement of financial performance 1 482 505 (22 262) 1 460 243 455 654 41 346 497 000 Contributions paid (153 737) (1 206) (154 943) (139 183) (1 576) (140 759) Net liability in statement of financial position 5 211 674 33 306 5 244 980 3 882 906 56 774 3 939 680 The contributions paid are actual contributions paid by the Entity, and the unrecognised actuarial gains and losses have been adjusted accordingly to take into account the difference between the estimated contribution payments determined by the actuary, and actual contributions paid to members by the Entity.

186 INTEGRATED Annual Report | 2013/14 48. 49. 47. f NO o r

49.1 48.2 48.1

RELATED-PARTY DISCLOSURES CONTINGENT LIABILITIES RETIREMENT BENEFITINFORMATION t TES T h e

year Outstanding insuranceclaims Contractual disputes Municipal entitiesandspecialareas promoting CapeTown asatourismcity. The CT CTICC parties inarm’s-length transactions. entities haveoccurred under termsandconditionsthatare nomore favourable thanthoseentered intowiththird The estimated based onmanagementassessmentisR259,81million(2013:R80,93million). The potentialextentoftheliabilitycannotbedetermined,sinceitissubjecttolitigation,butaprovisional estimate D V Arm’s-length transactionsfortheyear P determined andcouldresult inalesserorgreater amount. amount was based on quotations, medical reports and letters of demand received. Themerits must still be ercentage owned arious contractualclaimsbycontractors/suppliersandstaff ar uring theyear Service charges P Receivables ayables O

I e N H General salaryinflationrate General inflationrate D Key financialassumptions CC wasestablishedforCapeT V H Assumptions used medical aid Post-retirement nd et ef ealthcar iscount rate aluation interest rate T ealthcar e H fective discountrate d 30Jun , intheordinary courseof business, transactionsbetweentheCityofCapeTown andthefollowing liability for insurance claims amounts to R98,77 million (2013: R123,84 million). The estimated E C e costinflationrate e inflation ON e 2014(continued) S 1 erae602001, 5 8 2 1 9,6 524017 151380 16,5 6072090 -1% decrease 1 erae45734(35 0 6 2 3 (14,7) 424839 101065 (13,5) 4507334 -1% decrease +1% incr 1 nrae609221, 5 1 7 5 18,2 576654 151615 16,6 6079202 +1% increase O assumption Change in L ID own to become host to international conferences,own tobecomehostinternational withthe objectiveof ae45352(32 0 6 8 3 (4,9) 484 635 101569 (13,2) 4523502 ease (continued) ATE 5 211674 Liability D R’000 INTEGRATED A INTEGRATED F Healthcare IN E S benefits conomic Percentage ensitivity e currently indispute,and are subjecttomediation. A R’000 2014 1,67 7,50 ,060 ,25,82 5,82 6,00 6,00 9,30 change N % 8,00 – 2014 nn C % u

a Retirement entity I l R

AL STATEME analysis benefits pension e 2 4 492890 123 343 po R’000 2013 ,092 9,22 9,22 8,60 Service rt R’000 costs % 1,77 – 7,32 – |2 013/14 Healthcare M 27%50,18% 62,79% benefits 811 14912 18 111 Interest unicip 1 294 R’000 C 2014 R’000 ape costs % – 6,80 – 2013 T ality N own Percentage Retirement TS benefits pension change

of 1 068 1 300 R’000 2013

% % – – 187

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 49. RELATED-PARTY DISCLOSURES (continued) Municipality of Economic entity Cape Town 2014 2013 2014 2013 R’000 R’000 R’000 R’000 CMTF The fund was established to pool funds for road networks and maintenance in the metropolitan area. At yearend, the amount owing by the City of Cape Town to CMTF amounted to R27,38 million (2013: R44,58 million).

Percentage owned Administrator Arm’s-length transactions for the year Funds held on behalf of CMTF 27 381 44 584 27 381 44 584 Grants and transfers – conditions met 24 317 42 577 24 317 42 577 Interest paid 2 282 2 438 2 282 2 438 Revenue collected 4 958 5 083 4 958 5 083

CIDs These entities were established to enable projects at local communities’ initiative, to provide services over and above the services provided by the City of Cape Town.

Percentage owned Special rating areas Arm’s-length transactions between CIDs and the City of Cape Town Service charges 14 26 Levies 114 884 103 663 Arm’s-length transactions have been entered into with members of key management as well as related companies. Management contracts Cape Town – Cape Town Partnership 1 296 1 200 Epping CID – Just For You Business Support Services CC 974 914 Groote Schuur CID – Groote Schuur Management NPC 707 642 Woodstock CID – Lloyd’s Project Management CC 462 437

Rental contract Observatory CID – Zelkar Investments CC 93 72 Voortrekker Road – Greater Tygerberg Partnership NPC 186 52

Executive management No members of the City of Cape Town’s management have significant influence over the financial or operating policies of the municipal entities and special arrears. No business transactions took place between the City of Cape Town and key management personnel and their close family members.

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49.2

RELATED-PARTY DISCLOSURES(continued) t TES T h e

year Remuneration ofmanagement 49.2.1 O

e Mayoral Committeemembers Councillor Mamkeli,S(from 16/05/2014) Councillor Gqada,T(until06/05/2014) Housing Councillor Sonnenberg,EJ Utility Services Councillor Bloor Councillor Tourism, EventsandMarketing Councillor Transport forCapeTown Alderman W Community Services Councillor Councillor James,L Health Councillor Little,S Development Social DevelopmentandEarlyChildhood (fr Councillor Councillor Bloor, G(until15/05/2014) Planning Economic, EnvironmentalandSpatial Councillor Limberg,X(fr Alderman Qually, Corporate Services Alderman Smith,J Safety andSecurityServices Alderman Executive DeputyMayor/Finance Alderman Executive Mayor 2014 nd T om 16/05/2014) e H d 30Jun E C N D P H V V ascoe, G eilson, e Lille, an Minnen,B(from 16/05/2014) an derMerwe,J err alker, B on, B , G(from 16/05/2014) ON D P e P V ID L (until25/05/2014) 2014(continued) N (until06/05/2014) I (until06/04/2014) S om 26/05/2014) O L ID ATE D INTEGRATED A INTEGRATED F IN 0501 0 0 488 100 10002 10 590 1 164 A A R’000 Total nalysis 109 732 862 109 661 862 862 109 732 862 109 753 777 862 939 86 N nn C u a I

l R AL STATEME of Annual e

1 124 po salary remuneration R’000 109 732 770 109 606 862 770 109 732 862 753 711 729 841 rt 97 86 |2 013/14 allowance R’000 Car 60 40

benefits – – – – – – – – – – – – – – – N contribution TS Social R’000

92 55 92 12 66 73 98 – – – – – – – – – – 189

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 49. RELATED-PARTY DISCLOSURES (continued) Analysis of remuneration benefits Annual Car Social Total salary allowance contribution R’000 R’000 R’000 R’000 2013 Executive Mayor Alderman De Lille, P 1 108 1 068 40 – Executive Deputy Mayor/Finance Alderman Neilson, ID 874 781 – 93 Safety and Security Services Alderman Smith, JP 821 751 – 70 Corporate Services Alderman Qually, DL 821 751 – 70 Economic, Environmental and Spatial Planning Alderman Walker, B (until 31/01/2013) 479 434 – 45 Councillor Bloor, G (from 01/02/2013) 342 342 – – Social Development and Early Childhood Development Councillor Cortje-Alcock, BA 161 147 – 14 (until 17/09/2012) Councillor Little, S (from 27/09/2012) 625 625 – – Health Councillor James, LV 821 821 – – Community Services Councillor Gqada, T (until 31/01/2013) 479 479 – – Alderman Walker, B (from 01/02/2013) 342 310 – 32 Transport, Roads and Stormwater* Councillor Herron, BN 821 821 – – Tourism, Events and Marketing Councillor Pascoe, GI 821 751 – 70 Utility Services Councillor Sims, S (until 31/01/2013) 479 479 – – Councillor Sonnenberg, EJ (from 01/02/2013) 342 305 – 37 Housing Councillor Sonnenberg, EJ (until 31/01/2013) 428 428 – – Councillor Gqada, T (from 01/02/2013) 378 342 – 36 10 142 9 635 40 467 *Previously known as Transport, Roads and Stormwater.

49.2.2 Councillors/Mayoral Committee members Analysis of remuneration benefits Annual Car Social Total salary allowance contribution R’000 R’000 R’000 R’000 2014 Mayoral committee members 10 590 10 002 100 488 Councillors 103 005 98 891 20 4 094 Subsidiaries: Board members 445 445 – – 114 040 109 338 120 4 582 2013 Mayoral committee members 10 142 9 635 40 467 Councillors 97 397 93 252 124 4 021 Subsidiaries: Board members 208 208 – – 107 747 103 095 164 4 488

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RELATED-PARTY DISCLOSURES(continued) t TES T h e

year 49.2.3 O

e Toefy, R CTICC Kaiser, G Utility Services Whitehead, M Transport forCapeTown Groenewald, A Marketing Tourism, Eventsand D Childhood Development Social DevelopmentandEarly Bosman, R Safety andSecurity Executive Management Ras, Services Compliance andAuxiliary Maqetuka, S Settlement Services Integrated Human Mahlangu-Mathibela, W Health Jacoby, K Finance H and SpatialPlanning Economic, Environmental Mayimele- Corporate Services (appointed 08/07/2013) Mtwazi, L Community Services (retired 30/11/2013) Marsden, M Deputy CityManager of thecouncillorsisdisclosedonpage115aspart‘Generalinformation’. powers asgrantedbytheirdelegation,andare therefore disclosedassuch–refer tonote49.2.1.Afulllist councillor isR0,514millionperannum.TheMayoralCommitteemembershavesuchindividualexecutive remuneration amounted to R113,60 million for the period under review. The average remuneration per directing and controlling the activities of the City. There are 221 Council members, whose aggregate Councillors are remunerated according totheRemunerationof Ebrahim, A City Manager 2014 and are notdisclosedindividuallybutinaggr nd r Br ugo, J T D omfield, e H d 30Jun E C H ashatse, F I K ON e 2014(continued) S O L ID 479 22225 5 4 2979 259 1548 456 205 22202 24749 ATE 1 661 1 669 1 684 1 681 1 651 1 671 1 687 1 670 1 651 1 677 1 675 1 649 1 662 2 191 R’000 Total 870 D egate andonlyhavecollectiveexecutivepowersforplanning, Annual INTEGRATED A INTEGRATED 5 0 – – – – 205 1 456 6 23 – – 34 72 – 1 563 6 4– 14 2 – – 1 668 6 1– 11 2 – – 1 668 1 283 1 381 8 – – 2 – – 1 685 7 9 – – 195 – – 1 475 2 510–– – 150 75 – 1 426 8 1272– 2 207 81 – 1 387 1 631 1 568 7 426– 206 84 – – 1 372 7 9 6– 26 294 – – 1 871 F salary R’000 A 6 0 – – 102 – – 768 nalysis IN Perform- A bonus R’000 N

ance of nn C 3 3 – – 235 133 – 515–– – 195 95 – 4–– – 44 – – 79 – 2 – – P

remuneration u ublic a I l R AL STATEME allow- e R’000 O ance po ffice-Bearers Act(Act Car rt |2 013/14 bution contri- Social R’000

benefits and sub- sistance Travel R’000 N N o.20 of1998) TS allowance cation R’000 Relo-

191

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS for the year ended 30 June 2014 (continued) 49. RELATED-PARTY DISCLOSURES (continued) Analysis of remuneration benefits Perform- Car Social Travel Relo- Annual ance allow- contri- and sub- cation Total salary bonus ance bution sistance allowance R’000 R’000 R’000 R’000 R’000 R’000 R’000 2013 City Manager Ebrahim, A 2 033 1 748 – – 277 8 – Deputy City Manager Marsden, M 1 727 1 496 – – 231 – – Community Services Mtwazi, L 1 551 1 275 – 84 192 – – Corporate Services Habib, F (contract ended 1 233 1 231 – – 2 – – 31/03/2013) Stelzner, A (acting 01/05/2013) 194 151 – 14 29 – – Economic, Environmental and Spatial Planning Hugo, J 1 566 1 524 – – 42 – – Finance Jacoby, K 1 565 1 269 – 94 202 – – Health Bromfield,I K (contract ended 1 095 821 – 111 163 – – 30/04/2013) Mahlangu-Mathibela, W 258 230 – 14 14 – – (appointed 01/05/2013) Integrated Human Settlement Services Maqetuka, S 1 559 1 376 – – 183 – – Compliance and Auxiliary Services Ras, D (appointed 01/05/2013) 257 257 ––––– Safety and Security Bosman, R 1 560 1 281 – 96 183 – – Social Development and Early Childhood Development Biko, NB (contract ended 802 801 – – 1 – – 31/12/2012) Ras, D (acting 01/01/2013 – 379 378 – – 1 – – 30/04/2013) Bromfield, IK (appointed 402 343 – 22 37 – – 01/05/2013) Tourism, Events and Marketing Groenewald, A 1 574 1 558 – – 2 14 – Transport, Roads and Stormwater* Whitehead, M 1 573 1 563 – – 2 8 – Utility Services Dhlamini, L (contract ended 401 341 – 10 50 – – 31/10/2012) Kaiser, G (appointed 990 973 – – 17 – – 01/11/2012) CTICC Toefy, R 1 570 1 408 162 – – – – 22 289 20 024 162 445 1 628 30 – *Previously known as Transport, Roads and Stormwater.

50. EVENTS AFTER REPORTING DATE At the time of preparing and submitting the annual consolidated financial statements, there were no subsequent events to disclose.

192 INTEGRATED Annual Report | 2013/14 sc as A Balance Net interest Conces- Redeemed/ Balance ppendix

Contractual as at Received Capitalised accrual sionary Written as at at h

interest Loan Redeemable 30 June during during during loan off during 30 June 30Jun

rate (nacs) ID date 2013 the year the year the year adjustment year 2014 e

% R’000 R’000 R’000 R’000 R’000 R’000 R’000 du LOCAL REGISTERED STOCK e le 2014

Absa Nominees Proprietary Limited 14,650 830011508 2014 7 047 – – (247) – 6 800 – a Municipal Bond CCT01 12,570 830014004 2023 1 002 748 – – – – – 1 002 748 o : :

Municipal Bond CCT02 11,615 830016003 2024 1 207 236 – – – – – 1 207 236

Municipal Bond CCT03 11,160 830017007 2025 2 065 505 – – – – – 2 065 505 f

Total local registered stock 4 282 536 – – (247) – 6 800 4 275 489 exter

CONCESSIONARY LOANS Nedcor Bank 1,000 830000920 2019 19 – – – 3 – 22 DBSA 5,000 830012028 2020 24 332 – – – 868 4 000 21 200 n Agence Française de Développement 5,763 830018500 2028 515 381 – – (1 528) 10 350 40 000 484 203 al Agence Française de Développement 5,730 830018516 2028 514 170 – – (1 331) 10 454 40 000 483 293

Agence Française de Développement 5,755 830018530 2028 514 928 – – (1 053) 10 267 40 000 484 142 b Agence Française de Développement 5,800 830018523 2028 502 493 – – (848) 9 968 38 961 472 652 o Total concessionary loans 2 071 323 – – (4 760) 41 910 162 961 1 945 512 rr

OTHER LOANS o INTEGRATED A INTEGRATED DBSA 12,250 83001051 2015 68 889 – – (3 945) – 38 967 25 977 FirstRand Bank 12,631 830003504 2017 168 187 – – – – 9 464 158 723 w

Absa Bank 10,900 830007011 2018 100 000 – – – – 20 000 80 000 in DBSA 10,590 83001050 2018 196 335 – – (9 796) – 50 874 135 665 gs nn FirstRand Bank 12,046 830009531 2018 148 465 – – 1 967 – 20 000 130 432 u a DBSA 9,420 830012035 2020 65 333 – – – – 9 333 56 000 l R

e DBSA 9,639 830013000 2022 126 667 – – – – 13 334 113 333 po

rt DBSA 10,565 830013507 2022 126 667 – – – – 13 334 113 333

|2 Total other loans 1 000 543 – – (11 774) – 175 306 813 463 013/14 Total Municipality of Cape Town 7 354 402 – – (16 781) 41 910 345 067 7 034 464

OTHER LOANS – Controlled entities CID Claremont Road Co.: DBSA – – 2023 16 704 – – – – 1 095 15 609 CID Voortrekker Road – – 2019 – 86 – – – – 86 CID Zwaanswyk: Loans from members 9,000 – 2014 235 – – – – 235 – Total controlled entities 16 939 86 – – – 1 330 15 695

TOTAL EXTERNAL LOANS 7 371 341 86 – (16 781) 41 910 346 397 7 050 159 193

COST ACCUMULATED DEPRECIATION Opening Transfers/ Closing Opening Transfers/ Closing Carrying balance1 adjustments Additions2 Impairments Disposals balance balance1 adjustments3 Impairments Additions Disposals balance value R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 LAND AND BUILDINGS Land 973 575 51 848 61 416 (32 624) (1 903) 1 052 312 (326 513) 32 626 (32 624) – 1 023 (325 488) 726 824 Buildings and land 2 105 590 80 496 170 980 – (7 356) 2 349 710 (907 957) (149) – (44 334) 6 870 (945 570) 1 404 140 3 079 165 132 344 232 396 (32 624) (9 259) 3 402 022 (1 234 470) 32 477 (32 624) (44 334) 7 893 (1 271 058) 2 130 964 INFRASTRUCTURE Assets under construction 1 884 912 (1 628 195) 1 179 659 – – 1 436 376 – – – – – – 1 436 376 Telecommunications – 50 39 073 – – 39 123 – – – (241) – (241) 38 882 Drains 795 721 34 464 22 159 – – 852 344 (279 418) – – (27 213) – (306 631) 545 713 Roads 7 207 691 761 327 633 982 – – 8 603 000 (2 083 445) 542 – (252 768) – (2 335 671) 6 267 329 Beach improvements 40 869 (1) 311 – – 41 179 (21 099) – – (882) – (21 981) 19 198 Sewerage mains and purification 2 719 137 272 470 109 743 – – 3 101 350 (861 335) – – (143 673) – (1 005 008) 2 096 342 Electricity peak load equipment and mains 6 351 160 91 289 671 768 – – 7 114 217 (2 260 190) 145 – (134 167) – (2 394 212) 4 720 005 Water mains and purification 2 631 637 52 894 166 783 – – 2 851 314 (1 196 845) – – (103 523) – (1 300 368) 1 550 946 Reservoirs – water 452 910 17 064 19 511 – – 489 485 (315 322) 1 – (19 005) – (334 326) 155 159 22 084 037 (398 638) 2 842 989 – – 24 528 388 (7 017 654) 688 – (681 472) – (7 698 438) 16 829 950 COMMUNITY ASSETS Assets under construction 117 109 (84 550) 64 854 – – 97 413 – – – – – – 97 413 Parks and gardens 208 435 16 224 14 828 – – 239 487 (21 256) – – (7 652) – (28 908) 210 579 Libraries 206 417 269 20 – – 206 706 (64 304) – – (3 373) – (67 677) 139 029 Recreation facilities 5 371 094 46 747 37 584 – – 5 455 425 (976 645) 6 – (210 037) – (1 186 676) 4 268 749 Civic buildings 1 930 879 245 742 179 658 – – 2 356 279 (727 766) 130 – (65 161) – (792 797) 1 563 482 7 833 934 224 432 296 944 – – 8 355 310 (1 789 971) 136 – (286 223) – (2 076 058) 6 279 252 OTHER ASSETS Assets under construction 815 501 (866 447) 421 191 – – 370 245 (16 091) – – – – (16 091) 354 154 Buildings and land 18 415 298 (21) – – 415 295 (17) – – (297) – (314) 414 981 Landfill sites 770 018 2 469 30 458 – – 802 945 (364 312) (35 666) – (45 330) – (445 308) 357 637 Furniture, fittings and equipment 782 697 5 854 80 254 – (16 565) 852 240 (393 662) 1 – (95 755) 15 889 (473 527) 378 713 Bins and containers 45 448 2 921 6 299 – (57) 54 611 (36 738) – – (3 540) 58 (40 220) 14 391 Emergency equipment 38 195 (1) 1 174 – (75) 39 293 (32 325) – – (2 751) 75 (35 001) 4 292 Motor vehicles and watercraft 2 104 715 (687 565) 124 708 – (26 439) 1 515 419 (947 727) 52 995 (76) (141 091) 24 428 (1 011 471) 503 948 Specialised vehicles 1 040 791 2 915 125 035 – (34 792) 1 133 949 (432 175) 28 – (79 035) 34 123 (477 059) 656 890 Computer equipment 1 576 519 6 159 142 746 – (29 386) 1 696 038 (931 272) (33) – (220 181) 28 794 (1 122 692) 573 346 Animals 461 – 125 – – 586 (147) – – (73) – (220) 366 7 174 363 (1 118 397) 931 969 – (107 314) 6 880 621 (3 154 466) 17 325 (76) (588 053) 103 367 (3 621 903) 3 258 718 SERVICE CONCESSION ASSETS Busses and depots – 931 642 73 670 – – 1 005 312 – (53 544) – (73 356) – (126 900) 878 412 – 931 642 73 670 – – 1 005 312 – (53 544) – (73 356) – (126 900) 878 412 HOUSING RENTAL STOCK 1 699 759 227 458 177 573 – (1 465) 2 103 325 (682 092) (2) – (48 938) 822 (730 210) 1 373 115 TOTAL PPE (See note 1) 41 871 258 (1 159) 4 555 541 (32 624) (118 038) 46 274 978 (13 878 653) (2 920) (32 700) (1 722 376) 112 082 (15 524 567) 30 750 411 HERITAGE ASSETS (See note 2) Assets under construction 330 (330) – – – – – – – – – – – Painting and art galleries 9 081 – 37 – (7) 9 111 – – – – – – 9 111 9 411 (330) 37 – (7) 9 111 – – – – – – 9 111 INVESTMENT PROPERTIES (See note 3) 240 842 672 – – – 241 514 (48 897) (127) – (1 641) – (50 665) 190 849 INTANGIBLE ASSETS (See note 4) 1 081 501 806 22 752 – – 1 105 059 (324 892) 5 – (50 665) – (375 552) 729 507 TOTAL OTHER 1 331 754 1 148 22 789 – (7) 1 355 684 (373 789) (122) – (52 306) – (426 217) 929 467 GRAND TOTAL 43 203 012 (11) 4 578 330 (32 624) (118 045) 47 630 662 (14 252 442) (3 042) (32 700) (1 774 682) 112 082 (15 950 784) 31 679 878

1 Comparative restated: see note 46 for more detail. 2 Includes the contributed assets amount of R33,44 million. 3 The transfers/adjustment amount of R35,67 million is due to a change in the landfill site liability and was deducted from the cost of the related asset.

194 INTEGRATED Annual Report | 2013/14 3 2 1 TOTAL GRAND TOTAL OTHER 501 1081 4) note (See ASSETS INTANGIBLE 3) note (See PROPERTIES INVESTMENT Painting andartgalleries 1515419 (26439) Assets underconstruction 2) 565)852240 note (See ASSETS HERITAGE – 1) note TOTAL (See PPE –(16 HOUSING RENTAL STOCK 254 Busses anddepots 124708 SERVICE CONCESSION ASSETS (687565) 80 Animals 2104715 Computer equipment 5854 Specialised vehicles Motor vehiclesandwatercraft 782697 Emergency equipment Bins andcontainers –2851314 Furniture, fittingsandequipment – Landfill sites Buildings andland Assets underconstruction –3101350 OTHER783 ASSETS – Civic buildings Recreation facilities 166 Libraries 743 52 894 Parks andgardens Assets underconstruction 2631637 COMMUNITY ASSETS 109 Reservoirs –water 272470 Water mainsandpurification 2719137 mains Electricity peakloadequipmentand Sewerage mainsandpurification Beach improvements Roads Drains Telecommunications Assets underconstruction INFRASTRUCTURE Buildings andland Land AND BUILDINGSLAND The transfers/adjustment amountofR35,67million isduetoachangeinthelandfill site liabilityandwasdeductedfrom thecostofrelatedasset. Includes thecontributedassetsamount ofR33,44million. Comparative restated:seenote46 formoredetail. 22 084 037 (398 638) 2 842 989 – – 24 528 388 388 528 24 – – 989 2842 638) (398 037 084 22 43 203 012 203 43 41 871 258 7 833 934 224 432 296 944 – – 8 355 310 8355 – – 944 296 432 224 934 7833 16979 2 5 177 573 458 227 759 1699 1 331 754 331 1 15659 5 1276 – (936 1696038 (29386) 1133949 (34792) – – 142746 125035 6159 2915 1576519 2356279 5455425 1040791 – – – – 179658 37584 7114217 245742 – 46747 1930879 5371094 8603000 – – 671768 1436376 – – 91289 2349710 6351160 (7356) 633982 – 761327 – 7207691 1179659 (1628195) 170980 1884912 80496 2105590 3 079 165 132 344 232 396 396 232 132 344 3079165 71433 ( 1 9) 9199 – 931 969 (1 118 397) 7174 363 240 842 842 240 7 1 249 048 – – 802945 – 370245 – – 206706 – – 239487 30458 97413 – – 2469 – 421191 489485 770018 (866447) – – 20 – 815501 269 14828 – 64854 16224 852344 206417 (84550) 208435 – 19511 117109 17064 – 452910 22159 1052312 34464 (1903) 795721 (32624) 61416 51848 973575 815 () 114 – (5 39293 (75) 54611 (57) – – 1174 (1) 6299 2921 38195 45448 41179 – – 311 (1) 40869 Opening balance 8 7 – ()9111 (7) – 37 – 9081 1 30 3 – 37 (330) 9411 30 (3) – – – 586 – – (330) – 330 125 – 461 R’000 1 4528 (1 – – 415295 – – (21) 415298 18 – 3 4 7 7 1005312 – – 73 670 931642 – 39073 50 – – 3 4 7 7 1005312 – – 73670 931642 – 1 adjustments Transfers/ 1 148 1 (1 159) (1 806 672 672 R’000 (11) 4 578 330 4578 4 555 541 4555 Additions 22 789 22 22 752 – – 1 105 059 059 1105 – – 752 22 R’000 – – – – – COST 2 Impairments (32 624) (32 624) (32 624) R’000 39123 – – – – (118 045) (118 (118 038) 46 274 46 978 (118 038) (107 314) Disposals (1 465) (1 (9 259) (9 R’000 (7) (7) 47 630 662 47 630 3 402 022 022 3402 1 355 684 1355 6 880 621 6880 2 103 325 325 2103 241 514 514 241 balance Closing 9 111 111 9 R’000 as a An A (14 442) 252 (13 878 653) (2 920) (32 700) (1 722 376) 112 082 (15 524 567) 30 750 411 750 30 (15 567) 524 112 082 (1 376) 722 700) (32 920) (2 (13 653) 878 ( 5 6)17 325 466) 154 (3 ( 1 5) 8 – 688 017 (7 654) (1 234 470) 32 477 32 (1 470) 234 ( 9 4) 1353 – ( 0 6)1550946 (1300368) – 4720005 (2394212) – (103523) 6267329 – (2335671) (134167) – – – (252768) 145 – (1196845) (2260190) 542 (2083445) (1 971) 789 ppendix nd o

(682 092) (682 (2 9) – 5 892) (324 (373 789) (373 (3 7) 3) 2011 874 ( 2 9)573346 656890 (1122692) (477059) 28 794 34 123 503948 378713 (220181) 357637 (79035) (1011471) (473527) – 24428 (445308) – 15889 – (141091) (95755) (33) (76) 1563482 28 – (792797) 4268749 (45330) (1186676) – (931272) – 52995 – (432175) 1 (947727) 155159 (65161) (210037) (35666) (334326) – – (393662) – (364312) 2096342 130 6 (1005008) (19005) 545713 – – (727766) (306631) (976645) – (143673) 1 – (27213) 1404140 – (315322) (945570) – 726824 6870 (325488) – 1023 (44334) (861335) – – (279418) (149) (32624) 32626 (907957) (326513) at (48 897) (48 (235 – – ( 5) 5 (501 4292 14391 (35001) (40220) 75 354154 58 (16091) (2751) – (3540) – – 139029 – 210579 (67677) (28908) – – – – – (32325) (3373) (36738) – (7652) 19198 – – (21981) (16091) – – – (882) (64304) (21256) – – (21099) Opening balance alys 30Jun R’000 (4) 7) 20 366 (220) – (73) – – (147) (7 – – (9) 34 414981 (314) – (297) – – (17) – – 97413 – – – – 38882 1436376 – (241) – – – – (241) – – – – – – – – – – – – – – 9111 – – – – – – – – – 878412 – 878412 – (126900) – (126900) – – – – – (73356) (73356) – – – – – (53 544) (53 544) – – 1 t adjustments i e h s 2014–EconomicEntity( Transfers/ B: B: o er (3 042) (3 136 136 R’000 (127) (122) f (2)

assets p 3 Impairments r op (270 (1 774 682) 700) (32 (32 624) ACCUMULATED DEPRECIATION R’000 (76) erty – – (898 82 (3 1)1373 115 210) (730 822 938) (48 – – – (286 223) (588 053) (588 (681 472) (681 Additions (52 306) (52 (44 334) (44 (50 665) (50 , p continued) (1 641) (1 R’000 la n 103 367 (3 621 903) 3 258 718 3258 621 (3 903) 367 103 112 082 112 Disposals t 7 893 (1 271 058) 2 130 964 2130 964 (1 271 058) 7893

INTEGRATED A INTEGRATED R’000 a – (7 698 438) 16 829 950 950 16 829 438) 698 (7 – – (2 076 058) 6 279 252 6279 252 076 (2 058) – – – (375 552) 729 507 507 729 (375 552) – – nd (59074 31 679 878 (15 784) 950 (426 217) (426 (50 665) (50 eq nn balance Closing R’000 u a uip l R e po rt me 190 849 849 190 929 467 929 |2 Carrying 9 111 111 9 R’000 value 013/14 n t

195

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 Appendix c: DISCLOSURE OF BANK ACCOUNTS IN TERMS OF SECTION 125 (2)(a) of the MFMA for the year ended 30 June 2014

ACCOUNT NUMBERS 2014 2013 2012 2014 2013 R’000 R’000 R’000 MUNICIPALITY OF CAPE TOWN Bank accounts held with Absa Primary account 40-5658-4470 174 987 146 726 98 651 Salary bank account 40-5658-4496 – – – Cashier’s bank account 40-5658-4527 – – – General income bank account (primary) 40-5658-4569 – – – Traffic fines bank account 40-7261-8663 – – – IRT funding account 5435522023983010 – – 301 IRT funding account 5435522024946010 – – 325 IRT funding account 5435522024948010 – – 320 IRT investment account 40-7940-0542 – – – IRT bank account 40-8089-5180 – – – Amortised cost 174 987 146 726 99 597

SUBSIDIARIES CCTIC Bank accounts Nedbank – Current Account 1232043850 1 355 131 874 Absa Bank – Current 4072900553 2 872 996 2 153 Absa Bank – CTICC East – Current 4072900228 80 40 1 355 Absa Bank – Exh Serv – Current 4072900731 498 92 325 Absa Bank Treasury 4073731246 60 57 55 Absa Bank Treasury 4073733701 1 930 1 842 1 760 Amortised cost 6 795 3 158 6 522

City improvement districts 31 215 22 182 20 766 31 215 22 182 20 766 Total bank balances – see note 10 212 997 172 066 126 885

MUNICIPALITY OF CAPE TOWN ¹ Bank accounts managed by Fund Managers City of Cape Town 5500125800² 40-7635-9041³ 690 21 477 City of Cape Town 5500125801 40-7635-9245 1 394 1 163 361 City of Cape Town 5500125802 40-8124-5134 549 – – City of Cape Town 5500125803 40-7635-9588 1 087 4 889 611 City of Cape Town 5500125804 40-8124-5192 1 547 – – City of Cape Town 5500125805 40-8124-5176 429 – – City of Cape Town 5500125806 40-7635-9910 1 888 1 184 934 City of Cape Town 5500125807 40-7635-8647 568 3 174 10 771 City of Cape Town 5500125808 40-6712-0322 168 345 778 City of Cape Town 5500125809 40-7636-0082 105 862 344 Fair value – see note 10 8 425 11 638 14 276

1 Absa Bank Limited sold its custody and trustee business to Standard Chartered Bank, with the sale being registered on 2 December 2013. 2 The City of Cape Town was required to open a number of bank accounts with Standard Chartered Bank for the purpose of the investment and withdrawal of funds by the various fund managers on behalf of the City of Cape Town in terms of a Power of Attorney provided to each of the appointed fund managers. The effective date of the migration was on 2 December 2013. 3 The City of Cape Town was required to close the Absa Bank accounts that were used for the same purpose prior to the sale by Absa of its custody and trustee business to Standard Chartered Bank.

196 INTEGRATED Annual Report | 2013/14 N Absa Bank– Absa Bank–Fixeddeposit Fund C2 N Absa Bank– Absa Bank–Calldeposit Fair value N Standard Bank N Absa Bank–MoneyMarketFund Absa Bank–Fixed Absa Bank–Call Standard Bank Fund Fund N I I Stanlib –CorporateMoneyMarketFund Stanlib –CorporateMoneyMarketFund N N Investment accounts CCTIC SUBSIDIARIES f DI A C2 SECT nvestec –CorporateMoneyMarket nvestec –CorporateMoneyMarket o edgroup –MoneyMarket Fund Class edbank –Thr edgr edgr edbank –MoneyMarketFund edbank – edbank –CallAccount ppendix r SCL

t oup –CorporateMoneyMarket oup –MoneyMarketFund h e ION

I year nvestment Account O I I nvestment nvestment ee-month I I nvestment Account nvestment Account S D U

125(2)(a)oftheMFMA D

e eposit c eposit nd RE : : N N e D ew 1 ew 2 d 30Jun eposit O F BA e 2014(continued) N 03/7881544007/000094 03/7881544007/000095 000-402-184 (1199539) 000-402-184 (1199539) (1800167964) 8319631 000-402-184 (1199539) (506009 4072900553) (800190652) 8220496 (506009 4072900553) (800190652) 8330497 506009 4072900553 K ACC 03/7881544007/46 (462097) 1037793 (462097) 1008645 (97212) 478558 (97212) 476949 2014 ACCOUNTNUMBERS (1766000029) 4083941322 4074708347 9295637051 – 38052758 36753413 34942428 36999248 OUN INTEGRATED A INTEGRATED TS IN 2013 nn TERMS u a l R e 4 3 1152 126 336 151 562 132 348 po 14560 853 767 16751 17637 18583 812 – – – 18102 064 958 18636 19598 20644 536 – – – 15306 18293 39117 19564 306 – – – 13046 21381 13464 419 – – – 30093 – 24119 – – 23082 15011 17099 416 – – – 24116 7 1 8 2514 11181 4876 2 1 9 17743 15798 7328 5359 rt R’000 2014 |2 – 9 5131 5397 – O 013/14 F F 387 13110 13807 730 16 493 17360 021 19 280 20281 279 12114 12749 4 4564 2743

R’000 2013 – – – – – – – – – R’000 2012 197

2013 2014 Actual Actual Budgeted Actual Actual Budgeted Actual expendi- surplus/ surplus/ Actual expendi- surplus/ surplus/ income ture (deficit) (deficit) income ture (deficit) (deficit) R’000 R’000 R’000 R’000 BUSINESS UNITS R’000 R’000 R’000 R’000 Restated1 Restated1 15 902 590 12 923 414 2 979 176 2 464 727 Rates and general 16 041 640 15 596 255 445 385 504 141 391 134 898 940 (507 806) (524 742) City Health 432 299 936 192 (503 893) (567 918) 2 2 414 (2 412) (4 124) City Manager 128 12 725 (12 597) (4 041) 183 401 1 896 341 (1 712 940) (1 692 832) Community Services 162 449 1 904 820 (1 742 371) (1 726 434) Compliance and 62 301 457 393 (395 092) (303 603) Auxiliary 24 609 127 107 (102 498) (72 688) 26 527 121 536 (95 009) (110 933) Corporate Services 66 736 284 757 (218 021) (190 398) Economic, Environmental 104 348 639 277 (534 929) (559 886) and Spatial Planning 108 334 647 163 (538 829) (576 763) 2 248 839 1 150 049 1 098 790 583 412 Finance 1 959 700 1 339 262 620 438 509 355 8 922 491 2 107 753 6 814 738 6 706 617 Rates and Other 9 745 393 3 240 969 6 504 424 6 429 922 Safety and Security 193 313 1 915 750 (1 722 437) (1 673 579) Services 839 661 2 439 023 (1 599 362) (1 837 319) Social Development and Early Childhood 1 027 122 357 (121 330) (127 809) Development 128 158 366 (158 238) (160 547) Tourism, Events and 26 817 518 941 (492 124) (550 008) Marketing 64 931 626 671 (561 740) (621 089) Transport for 2 557 646 2 011 744 545 902 675 082 Cape Town* 1 415 099 2 590 514 (1 175 415) (769 299) 1 184 744 1 080 919 103 825 47 132 Human Settlements 1 222 173 1 288 686 (66 513) 91 360

17 239 026 16 774 476 464 550 734 394 Utility Services 18 197 523 16 983 432 1 214 091 949 221 Solid Waste 2 155 923 2 143 298 12 625 98 892 Management 2 371 628 2 127 022 244 606 88 862 2 082 168 2 122 217 (40 049) 56 966 Sanitation 2 234 857 2 249 155 (14 298) 12 878 3 274 675 3 226 858 47 817 78 611 Water 3 350 919 3 208 213 142 706 142 017 9 726 260 9 282 103 444 157 499 925 Cape Town Electricity 10 240 119 9 399 042 841 077 705 464

276 646 245 331 31 315 6 375 Subsidiaries 312 580 278 419 34 161 3 557 Cape Town International Convention Centre 167 430 140 714 26 716 6 375 Proprietary Limited 187 547 161 739 25 808 2 732 City improvement 109 216 104 617 4 599 – districts 125 033 116 680 8 353 825

33 418 262 29 943 221 3 475 041 3 205 496 Subtotal 34 551 743 32 858 106 1 693 637 1 456 919 Interdepartmental 5 896 761 5 896 761 – – charges 6 181 249 6 181 249 – – 27 521 501 24 046 460 3 475 041 3 205 496 Total before taxation 28 370 494 26 676 857 1 693 637 1 456 919

*Previously known as Transport, Roads and Stormwater.

1 Comparative restated: see note 46 for more details.

198 INTEGRATED Annual Report | 2013/14 f O DI A National and Provincial Grant Funds 2013/2014 o ppendix r F SECT SCL

Conditions met – Balance Balance t

transferred to revenue h unspent at Current Amounts unspent e

beginning year Adjust- Interest to be at the end 1 1 year of the year receipts ments Operating Capital earned claimed of the year O Description Source R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 S ION U

National Government E: e

2014 African Nations Championship Sport and Recreation – (63 000) 5 146 45 060 3 942 – – (8 852) nd RE

Accreditation: Development Support State Housing (1 015) – – 57 14 – – (944) e 123 Budget reform funds National Treasury (148) (1 250) – 219 841 – – (338) d 30Jun Department of Environmental Affairs and Tourism Environmental Affairs (24) (245) – 224 – – – (45) O

DME - INEP Energy – (24 500) – – 7 276 – – (17 224) F GRA Energy efficiency electricity demand-side National Treasury ( 24) (16 000) 24 1 728 7 683 – – (6 589)

management O Expanded Public Works Incentive Grant National Treasury (9 330) (32 080) – 38 192 412 – – (2 806) e 2014 Health and hygiene education: informal Water (11) – – – – – – (11) F T settlements N

Infrastructure skills development National Treasury – (1 000) – – 99 (901) H TS A

Integrated City Development Grant National Treasury – (10 364) – 864 – – – (9 500) E MFMA LGSETA: Environmental Internship Programme Environmental Affairs (17) – – – – – – (17) LGSETA: Post-graduate Internship Programme Environmental Affairs (522) – – – – – – (522) Municipal Disaster Grant Corporate Governance – (5 761) – – 3 589 – – (2 172) and Traditional Affairs ND Natural resource management Environmental Affairs (2 619) – – 2 474 – – – (145)

Neighbourhood Development Programme National Treasury (16 435) (26 000) – – 24 551 – – (17 884) S

INTEGRATED A INTEGRATED Public Transport Infrastructure Systems Grant Transport (184 637) – – 53 341 131 296 – – –

Public Transport Infrastructure Grant Transport – (946 241) – – 654 511 – – (291 730) U Public Transport Network Operations Grant Transport – (352 521) – 217 101 1 – – (135 419) BS Restructuring Grant – Seed funding National Treasury (4 831) – – – – – – (4 831) Urban renewal National Treasury (27 856) – – 376 15 373 – – (12 107) IDI

nn Urban Settlement Development Grant National Treasury (66 276) (1 193 497) – 57 826 915 400 – – (286 547) ES u Water demand side Water (697) – – – – – – (697) a

l R Total Dora allocation (314 442) (2 672 459) 5 170 417 462 1 764 988 – – (799 281) e IN po 2010 FIFA World Cup: Green Point: interest (4 421) – – – 3 891 – – (530)

rt account TERMS

|2 LGSETA: Post-graduate Internship Programme: (6) – – – – (29) – (35) interest account 013/14 Natural Resource Management: interest account (88) – – – – (88) – (176) Neighbourhood Development Programme: (6 722) – – – – (2 080) – (8 802) interest account Public Transport Infrastructure Systems Grant: (201 339) – – 2 778 – (19 485) – (218 046)

interest account Public Transport Infrastructure Grant: interest – – – – – (13 677) – (13 677) account Public Transport Network Operations Grant: – – – – – (5 516) – (5 516) interest account Smart Living Handbook: interest account (73) – – – – (4) – (77) Total interest earned (212 649) – – 2 778 3 891 (40 879) – (246 859) 199 Total National Government transfers and grants (527 091) (2 672 459) 5 170 420 240 1 768 879 (40 879) – (1 046 140)

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 Appendix E: DISCLOSURE OF GRANTS AND SUBSIDIES IN TERMS OF SECTION 123 OF THE MFMA for the year ended 30 June 2014 (continued) 1 R’000 Balance unspent at the end of the year to be R’000 claimed Amounts R’000 earned Interest R’000 Capital 2013/2014 unds F R’000 Conditions met – rant transferred to revenue transferred Operating G R’000 ments Adjust- rovincial P and

– (5 081) – 4 860 – – (221) – – – – – – (13) – (11 676) 19 231 – – (7 555) – – – – – – – (4) – – – – (144) – (2 805) year R’000 Current receipts (33 201) 4 304 32 233 – – (3 336) – ational 1 N (4) – – – – – – (4) (4) – – – (71) – – – – – – (71) (27) – – – – (1) – (28) (13) (20) – – – – – – (20) (44) – – – – – – (44) (71) – – – – (4) – (75) (37) – – – – – – (37) (323) – – – – – – (323) (187) – – – – (10) – (197) (471) – – – – – – (471) (274) – – – – – – (274) (104) – – – – – – (104) (299) – – – – – – (299) (350) – (311) 3 204 – – (2 691) (148) (537) – (317) 276 – (31) (7) 6) R’000 (1 742) – – – – – – (1 742) (1 137) – – 90 571 – – (476) (5 366) – 899 – – (286) – (4 753) (3 369) – – 80 – – – (3 289) (1 857) – 22 1 895 – (60) – – (1 901) – – – – (103) – (2 004) (2 649) – – 33 – (142) – (2 758) (3 305) – – – – – – (3 30 (615) (2 439) – (1 292) 1 846 – (125) (10) (2 020) (1 063) – – – 243 (56) – (876) (2 661) Balance (27 511) (10 000) – 3 690 – (1 560) – (35 381) (11 564) – – 27 – – – (11 537) (35 284) – (269 169) – 218 570 – (28 880) (114 763) beginning unspent at of the year ublic ublic P P evelopment D Source ourism orks orks uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements ealth uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements ealth ealth ransport and Education H Transport and Transport W H Sport H H H H H H H H H H H H H T W H H Treasury H H H H H H H and T Economic H H H H oject ogrammes nits U nfill 3 I ay TRA e/flood kits ark unoon and Atlantis P azendal D H ark housing pr /Aids and TB pr P HIV ani allacedene phase 1, 3, 4, 5 and 6 eedom yanga, H epair and reconstruct of eight houses epair and reconstruct Fr N W

r H O elft South high-density housing elft sport field development elft Symphony W ial-a-Ride isaster Fund – fir unoon phase 1 and 3: transfers HP HP Description ABET Adult Education Accreditation assistance Accreditation Athlone Stadium general upgrading Atlantis – Wesfleur Extention 13 Atlantis – Wesfleur Atlantis Thusong multipurpose centre and Cultural Affairs Bardale high-mast lighting project Bardale Bokmakierie/ Broadband Browns Farm phase 3, 4, 5 and 6 Browns CB CB Chemical toilets in Wallacedene Chris Clinics: Community Residential D D D D D D E-Business project Echo Road housing project Edward Road energy-efficient project Road energy-efficient Edward E E Enkanini housing project Establishment grants Facilitation grants False Bay ecology Fire detection surveillance cameras Fire Gabriel Square restitution Gabriel Square Global Fund Global Fund: Antiretroviral

200 INTEGRATED Annual Report | 2013/14 for theyearndd30Jun2014(continued) OF SECTION123THEMFMA DISCLOSURE FGRANTSANDBSIDIESINTERMS Appendix E:

National and Provincial Grant Funds 2013/2014 Conditions met – f O DI A

Balance transferred to revenue Balance o ppendix r unspent at Current Amounts unspent F SECT SCL

beginning at the end year Adjust- Interest to be t 1 1 of the year receipts ments Operating Capital earned claimed of the year h

Description Source R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 e

year Global Fund community-based response project Health – (2 938) 818 3 063 – – (943) – O

Government Grant community development workers Human Settlements – (984) – 367 – (24) – (641) S ION

Green Point phase 21 housing Human Settlements (863) – – – – – – (863) U

E: E: e

Greenland’s housing project Human Settlements (971) – – – – – – (971) nd Gugulethu Seven Memorial Cultural Affairs and RE e

Sport (46) – – – – (3) – (49) 123 Hangberg Housing Project Human Settlements (52) – – – – – – (52) d 30Jun O Hangberg: Appointment of mediator Human Settlements (85) – – – – – – (85) Happy Valley phase 2 top structures Human Settlements – – (22 603) 32 182 – – (9 579) – F GRA HCE manuals (housing consumer education) Human Settlements (186) – – 20 – (9) – (175) Heideveld Housing Infill Human Settlements – – 619 – – – (619) – O e 2014(continued)

HIV/Aids community-based response projects Health – (97 542) 13 384 88 613 – – (4 455) – F T Hostels phase 2 housing Human Settlements (996) – – – – – – (996)

Housing Settlements Development Grant Human Settlements – (623 269) 632 556 1 521 – – (10 808) – N Imizamo Yethu IDA Human Settlements – – – 336 – – (336) – H TS A

Imizamo Yethu phase 2 new services Human Settlements (931) – – – – – – (931) E MFMA Informal settlements Human Settlements (1 420) (1 000) 56 712 – – – (1 652) Integrated community access network – (2 350) – – – (28) – (2 378) Jakkelsvlei canal upgrading Human Settlements (10 427) – – – – – – (10 427) Kalkfontein phase 2 Human Settlements (395) – – – – – – (395) ND Kanonkop phase 1 top structures Human Settlements – – (8 826) 10 160 – – (1 334) –

Kewtown Infill Development Human Settlements (190) – – – – – – (190) S

INTEGRATED A INTEGRATED Khayelitsha development of Remembrance Square Economic

Development and U

Tourism (19) – – – – (1) – (20) BS Khayelitsha Khuyasa phase 2 Human Settlements (373) – – – – – – (373) Khayelitsha Multipurpose Centre Social Development (874) – – – – (48) – (922) Khayelitsha Site C subsidies Human Settlements (4 015) – – 363 – (208) – (3 860) IDI nn Khayelitsha Stadium Site B Cultural Affairs and ES u Sport (106) – – – – – – (106) a

l R Khayelitsha vacant land study Environmental Affairs e

and Development IN po Planning (4) – – – – – – (4) rt

Kleinvlei phase 2 Human Settlements – – (2 112) 2 215 – – (103) – TERMS |2 Kuyasa T3V1 top structures Human Settlements (202) – – – – – – (202)

013/14 Langa sports field development Cultural Affairs and Sport (105) – – – – – – (105) Law enforcement officers Cultural Affairs and Sport (463) (27 428) – 27 228 200 – – (463) Local spatial plan Environmental Affairs and Development Planning (1) – – – – – – (1) Macassar Treatment Works Human Settlements (8 000) – – – 2 500 – – (5 500) Mandela Park Sports Fields: tennis facilities Cultural Affairs and Sport (42) – – – – – – (42) Manenberg sport complex upgrade Cultural Affairs and Sport (235) – – – – – – (235) 201 Marconi Beam Human Settlements (9) – – – – – – (9)

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 Appendix E: DISCLOSURE OF GRANTS AND SUBSIDIES IN TERMS OF SECTION 123 OF THE MFMA for the year ended 30 June 2014 (continued) 1 R’000 Balance unspent at the end of the year to be R’000 claimed Amounts R’000 earned Interest R’000 2013/2014 Capital unds F R’000 rant Conditions met – G transferred to revenue transferred Operating R’000 ments Adjust- rovincial P and

year R’000 Current receipts ational N 1 – (22 600) (22) 10 888 139 (362) – (11 957) – – (24 317) 3 264 21 053 – – – – (4 400) – 468 – (54 558) 4 385 67 253 – – – – (12 695) (453) – – – – 28 29 – – (57) – – – (16 762) – 16 082 – – (680) (90) – – – – – – (90) (52) (22) – 52 – – – – – – – – – – – (22) (894) – – – – (49) – (943) (126) (218) (129) (332) – – (213) – – – – (727) – – (276) – – – (350) – – – (164) – – – – – – – – – – – – – – – – – – – – – – – – – – – (126) – – (218) (40) (129) – – (332) – – (213) – – – – (767) – (276) – (350) (164) (101) (771) (974) – (122) – – – – – – 133 – ( 45) – 105 – – – (4) – – – – – – – – (638) – (974) (167) (187) (270) – (399) – – (127) – – – – – – – – – (10) – 4 (15) – – – (197) (22) – – (285) – – (421) (123) R’000 (3 005) (4 143) – – (1 044) – – – – – – – – – – – – – (3 005) – (57) (4 143) – (1 101) (2 091) (24 409) – 22 008 (9 842) 2 263 – (295) (1 880) 14 633 – (2 524) – – (2 911) – Balance (13 697) – – – – (746) – (14 443) (61 977) – (157 662) 143 242 – (4 817) (5 637) (86 851) beginning of the year unspent at fairs ublic ublic P P evelopment D evelopment Source D orks orks uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements ealth uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements uman Settlements lanning H H H Transport and Transport W H H H H H H H H H H H H H H Agriculture H H H H H H and Transport W and Cultural Affairs Sport H and P H H H Social Environmental Af Environmental evelopment D goku N n Cape roject rogramme P P roject P roject P roject P nfill phase 1 I illage TRA ousing P V lain and Family lain Youth lain TRA S H ousing illage 3/Wester HP P P P ark: Flooding ousing ark 2083 top structures V H UI P P H etreg etreg onqubela phase 2/Makhaza utrition Supplement elican hilippi East top structures hilippi East Market hilippi East phase 5 hilippi hoenix top structures hoenix eople’s humlani Transfers at rail park- of security improvements rovision ublic Library Fund Masiphumelele Amakhaya Masiphumelele TRA Melkbosch Description Fund Land Transport Metropolitan Fund Transport Metropolitan Mfuleni and Strand 12 houses Mfuleni E Mfuleni Extension 3 Mfuleni Extension 4 housing relief project Mfuleni flood Mfuleni MLS top structure Mitchells Mitchells Mitchells Morgan N N N P P P P P P P P P P and-ride facilities P Redhill informal settlement River Clean and Green Rondevlei Scottsdene: 350 top structures Scottsdene: 550 top structures Centre

202 INTEGRATED Annual Report | 2013/14 for theyearndd30Jun2014(continued) OF SECTION123THEMFMA DISCLOSURE FGRANTSANDBSIDIESINTERMS Appendix E:

f O DI A National and Provincial Grant Funds 2013/2014 o ppendix r F SECT SCL

Conditions met – t

Balance transferred to revenue Balance h

unspent at Current Amounts unspent e

beginning year Adjust- Interest to be at the end year of the year1 receipts ments Operating Capital earned claimed of the year1 O

Description Source R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 S ION U

E: E:

Social Economic Facilities Programme Human Settlements (1 946) – (6 378) – 15 102 – (9 125) (2 347) e nd

Sercor Park Human Settlements (704) – – – – – – (704) RE Silvertown Khayelitsha: 2 000 structures Human Settlements (1 142) – – – – – – (1 142) e 123 Sir Lowry’s Pass Village TRA Human Settlements – – – 1 903 – – (1 903) – d 30Jun O Site C survey and subdivision Human Settlements – – 135 – – – (135) – Somerset West Housing Project Human Settlements (4 164) – – – – – – (4 164) F GRA Spandau Project: 384 houses Human Settlements (36) – – – – – – (36) O

Table Mountain biosphere Environmental Affairs e 2014(continued) and Development F T Planning (7) – – – – – – (7) N

Tafelsig area: Silver City Human Settlements (202) – – – – – – (202) H TS A

Tambo Square Human Settlements (42) – – – – – – (42) E MFMA TB Crisis Plan Health (6 085) (14 025) – 11 807 – – – (8 303) Temperance Town Human Settlements (83) – – 84 – – (1) –

Upgrade Bishop Lavis Sports Complex Cultural Affairs and ND Sport (874) – – – 874 – – – Upgrade Heinz Park Hall Cultural Affairs and S

INTEGRATED A INTEGRATED Sport (124) – – – – – – (124)

Urban renewal: Improvement of Station Environmental Affairs U

and Development BS Planning (25) – – – – – – (25)

Vaccines Health – (73 439) 11 111 66 724 – – (4 396) – IDI

nn Vehicle Impound Facility: Maitland Transport and Public ES

u Works (1 557) – – – 1 318 (47) – (286) a

l R Vrygrond Human Settlements (34) – – 1 – – – (33)

e Vrygrond (EPH) Human Settlements (226) – – 14 – (12) – (224) IN po Wallacedene phase 3, 4, 5, 6, 7, 8, 9 and 10 Human Settlements (14 306) – 355 704 – – (14) (13 261) rt TERMS TERMS

|2 Watergate phase A Cultural Affairs and Sport (170) – – – – (9) – (179) 013/14 Witsand Housing Project phase I and 2 Human Settlements (184) – – – – – – (184) Total Provincial Government transfers and grants (269 948) (937 585) 81 796 576 461 283 880 (9 328) (107 983) (382 707) Analysis of grants and subsidies Total National Government transfers and grants (527 091) (2 672 459) 5 170 420 240 1 768 879 (40 879) – (1 046 140) Total Provincial Government transfers and grants (269 948) (937 585) 81 796 576 461 283 880 (9 328) (107 983) (382 707) (797 039) (3 610 044) 86 966 996 701 2 052 759 (50 207) (107 983) (1 428 847) 203

2013/2014 2013/2014 2012/2013 Budget Expen- adjustments Shifting Virement Actual Actual diture (i.t.o. s28 Final of funds (i.t.o. outcome outcome as Reported authorised and s31 adjust- (i.t.o. s31 Council- Un- as % % of un- in terms of Balance Restated Original of the ments of the approved Final Actual authorised of final original authorised section 32 to be audited budget1 MFMA) budget MFMA) policy) budget1 outcome expenditure Variance budget budget expenditure of MFMA recovered outcome R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 R’000 % % R’000 R’000 R’000 R’000 Financial performance Property rates 5 527 108 – 5 527 108 – (99 720) 5 427 388 5 542 203 – – 102 100 – – – – Service charges 14 604 532 (189 544) 14 414 988 – – 14 414 988 14 063 470 – – 98 96 – – – – Investment revenue 298 692 (8 916) 289 776 – – 289 776 473 323 – – 163 158 – – – – Transfers recognised – operational 2 595 904 13 243 2 609 147 – – 2 609 147 2 389 432 – – 92 92 – – – – Other own revenue 3 051 873 12 365 3 064 238 – 99 720 3 163 958 3 763 250 – – 119 123 – – – – Total revenue (excluding capital transfers and contributions) 26 078 109 (172 852) 25 905 257 – – 25 905 257 26 231 678 – – 101 101 – – – – Employee costs2 8 304 409 (33 585) 8 270 824 – 1 239 310 9 510 134 8 691 018 – – 91 105 – – – – Remuneration of councillors 123 721 – 123 721 – – 123 721 120 153 – – 97 97 – – – – Debt impairment 866 457 15 000 881 457 – – 881 457 1 327 820 – – 151 153 – – – – Depreciation and asset impairment 1 961 291 22 983 1 984 274 – – 1 984 274 1 774 683 – – 89 90 – – – – Finance charges 863 950 – 863 950 – 60 864 010 808 782 – – 94 94 – – – – Materials and bulk purchases 7 257 562 (316 703) 6 940 859 – (1 742) 6 939 117 6 591 232 – – 95 91 – – – – Transfers and grants 39 544 78 271 117 815 – 4 679 122 494 115 034 – – 94 291 – – – – Other expenditure 6 895 402 66 011 6 961 410 – 10 693 6 972 103 7 248 135 – – 104 105 – – – – Total expenditure 26 312 336 (168 023) 26 144 310 – 1 253 000 27 397 310 26 676 857 – – 97 101 – – – – Surplus/(deficit) (234 227) (4 829) (239 053) – (1 253 000) (1 492 053) (445 179) – – 30 190 – – – – Transfers recognised – capital 2 535 058 338 613 2 873 671 – – 2 873 671 2 052 758 – – 71 81 – – – – Contributions recognised – capital and contributed assets 48 250 27 051 75 301 – – 75 301 86 058 – – 114 178 – – – – Surplus/(deficit) after capital transfers and contributions 2 349 081 360 835 2 709 919 – (1 253 000) 1 456 919 1 693 637 – – 116 72 – – – – Share of surplus/(deficit) of associate – – – – – – – – – – – – – – – Surplus/(deficit) for the year 2 349 081 360 835 2 709 919 – (1 253 000) 1 456 919 1 693 637 – – 116 72 – – – –

Capital expenditure and funds sources Capital expenditure Transfers recognised – capital 2 537 158 328 613 2 865 771 – – 2 865 771 2 053 319 – – 72 81 – – – – Public contributions and donations 46 150 5 874 52 024 – – 52 024 44 022 – – 85 95 – – – – Borrowing 2 149 497 (113 064) 2 036 433 – – 2 036 433 1 856 889 – – 91 86 – – – – Internally generated funds 964 278 (258 099) 706 179 – – 706 179 590 662 – – 84 61 – – – – Total sources of capital funds 5 697 083 (36 676) 5 660 407 – – 5 660 407 4 544 892 – – 80 80 – – – –

Cash flows Net cash from (used) operating 4 447 103 192 080 4 639 183 – – 4 639 183 4 566 057 – – 98 103 – – – – Net cash from (used) investing (5 109 063) (427 673) (5 536 736) – – (5 536 736) (6 588 723) – – 119 129 – – – – Net cash from (used) financing (598 143) – (598 143) – – (598 143) (232 000) – – 39 39 – – – – Cash/cash equivalents at the yearend (1 260 103) (235 593) (1 495 696) – – (1 495 696) (2 254 666) – – 151 179 – – – –

1 The classification of categories for revenue and expenditure differs from the statement of financial performance and the statement of comparison of budget and actuals as the classifications required by NT is different from accounting practice. 2 An amount of R1,253 billion budget was approved by Council, relating to the increase in the provision liability raised against the prior year accumulated surplus.

204 INTEGRATED Annual Report | 2013/14 ahcs qiaet tteyaed ( 6 0) 2553 ( 9 9) (1495 696) – – 2 (1495696) (235593) 1 (1260103) Cash/cash equivalentsattheyearend Net cashfrom (used)financing Net cashfrom (used)investing Net cashfrom (used)operating Cash flows Total sources ofcapitalfunds generatedfunds Internally Borrowing Public contributionsanddonations Transfers recognised –capital Capital expenditure Capital expenditure and fundssources Surplus/(deficit) fortheyear 1984274 Share ofsurplus/(deficit) associate – and contributions Surplus/(deficit) aftercapitaltransfers contributed assets – Contributions recognised – capitaland Transfers recognised –capital Surplus/(deficit) 1984274 Total expenditure 22983 Other expenditure 1961291 Transfers and grants Materials andbulkpurchases Finance charges Depreciation andassetimpairment Debt impairment Remuneration ofcouncillors Employee costs transfers andcontributions) Total revenue (excludingcapital Other ownrevenue Transfers recognised –operational Investment revenue Service charges Property rates Financial performance accumulated surplus. An amountofR1,253billionbudgetwasapprovedbyCouncil,relating totheincreaseinprovisionliabilityraisedagainstprioryear comparison ofbudgetandactualsastheclassificationsrequiredby NT isdifferentfromaccountingpractice. The classificationofcategoriesforrevenueandexpenditurediffers fromthestatementoffinancialperformanceand 2

2 1 3 1803 2 4 1 5 0 27397310 1253000 – 26144310 (168023) 26312336 25905257 – – 14414988 – 25905257 (172852) 26078109 – 14414988 (189544) 14604532 ( 0 6) 4763 ( 3 3) (5536736) – – (5536 736) (427673) (5109063) 44713 9 8 3 8 4639183 – 5660407 – – 2036433 – – 4639183 2865771 192080 – 4447103 – 5660407 (36676) – 5697083 2036433 (113064) 2149497 1456919 2865771 (1253000) – 328613 2537158 1456919 (1253000) – 2873671 – 2709919 360835 2349081 2709919 360835 – 2349081 6972103 10693 – 2873671 6939117 338613 (1742) 2535058 – 6961410 66011 6895402 6940859 (316703) 7257562 2609147 – 3163958 99720 – 5427388 – (99720) – 3064238 12365 2609147 13243 3051873 5527108 2595904 – 5527108 83449 (355 82084 – 12930 9510134 1239310 – 8270824 (33585) 8304409 (9 4) 5813 – – (598143) – – (598 143) – 706179 – (598143) – 706179 (258099) 964278 (1492053) (1253000) – 864010 60 123721 (239053) 881457 – – (4829) – (234227) 863950 – – – 123721 289776 881457 863950 – – 15000 866457 123721 – 289776 (8916) 298692 610 7 5 2 52024 – – 52024 5874 75301 – 46150 – 75301 122494 27051 4679 48250 – 117815 78271 39544 Original budget R’000 – – – – – – – – – – – 1 adjustments (i.t.o. s28 and s31 Budget MFMA) R’000 of the budget adjustments R’000 Final 2013/2014 (i.t.o. s31 of funds Shifting MFMA) R’000 of the approved Virement Council- R’000 policy) (i.t.o. budget R’000 Final 1 2 7 5 9 101 97 – – 101 26676857 101 96 – 98 – – 26231678 – 14063470 ( 5 6) 11179 151 – – (2254666) ( 8 2) 19129 119 – – (6588723) 20339 – – 281 72 72 72 – 116 81 116 – – – 2053319 71 105 – 91 – – 104 1693637 90 95 153 1693637 – – 89 105 – 151 – 2052758 91 – 123 92 – – 7248135 – – 119 92 – 6591232 100 – – 1774683 – 1327820 102 – 8691018 – – 3763250 – 2389432 5542203 45607 – – 8103 80 98 86 80 – 91 – – – – 4566057 – 4544892 1856889 (3 0) 3 39 39 61 – 84 – – (232000) – 590662 190 291 30 94 94 – 97 94 – – 97 – – (445179) – – 158 115034 – 808782 163 – 120153 – 473323 outcome 402 – – 595 85 – 178 – 114 44022 – – 86058 Actual R’000 – – – – – – – – – expenditure authorised R’000 Un- 2013/2014 Variance R’000 outcome of final budget Actual as % % outcome as original budget Actual % of % INTEGRATED A INTEGRATED expenditure authorised Reported R’000 nn un- – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – – u a l R in termsof authorised section 32 e of MFMA po Expen- R’000 diture rt 2012/2013 |2 013/14 recovered Balance R’000 to be Restated outcome audited R’000 205

AFD Agence Française de Développement

ASB Accounting Standards Board

CIDs City Improvement Districts

CMTF Cape Metropolitan Transport Fund

Coid compensation for occupational injuries and diseases

CPI consumer price index

CRR capital replacement reserve

CTICC Cape Town International Convention Centre (Pty) Ltd

DB defined-benefit (scheme)

DBSA Development Bank of Southern Africa

DC defined-contributions (scheme)

Dora Division of Revenue Act

EFF External Finance Fund

FBE free basic electricity

GRAP Generally Recognised Accounting Practice

IA Internal Audit

IDP Integrated Development Plan

IRM integrated risk management

IRT integrated rapid transit

JSE Johannesburg Stock Exchange

KCT Khayelitsha Community Trust

MFMA Municipal Finance Management Act

PAYE pay-as-you-earn

PPE property, plant and equipment

SALGA South African Local Government Association

SARS South African Revenue Service

SCM supply chain management

UIF Unemployment Insurance Fund

VAT value-added tax

WDC World Design Capital

206 INTEGRATED Annual Report | 2013/14 subcommittees were active during the financial year. duringthe active were subcommittees and Services Legal Services, Forensic Africa, of South Auditor-General the O # composition MPAC * Exited D M of M Establishment for the Guideline M M M activities. I additional authority. M entity. municipal its and City by the irregular, expenditure wasteful and unauthorised, fruitless i M f Co R Table 5.2: attendance MPAC meeting Table 5.1: (MPAC) Accounts Committee Public of Municipal the Membership s authorised in terms of sections 32(2) of in sections terms 102(1) and s authorised to of 2003 56 investigate Act Finance Management Municipal of the n a Cllr BvanMinnen* Cllr Bvan Cllr CScheepers Cllr S Cllr CMhlanga Cllr Cllr Cllr Cllr S Cllr BvanMinnen Cllr Bvan Cllr S Cllr Cllr Subcouncil Cllr Cllr S Party Cllr EAnstey (Chairperson) Cllr WMxolose Councillor Cllr Cllr EAnstey Cllr WMxolose(Chairperson) Councillor Cllr CScheepers Cllr CMhlanga Cllr Entered MPAC composition MPAC Entered o uring the year under review, under year uring the 10 M ther meetings with the Speaker and Speaker and the with meetings ther P P P P eetings embership e AC consists of the following 10 members (with a maximum of 13 members recommended by the by the of 13 amaximum recommended (with 10 following of the AC members members consists AC h AC h 117 Act Structures 79 Municipal of the of in section terms committee oversight an as of 1998, and AC established was r ddition, M ddition, N D V P N D V P

po t Chapple Chapple

Makasi Khathswa Makasi Khathswa P P D D mm I I h saacs saacs ienaar ienaar iamond* iamond ereby presents its first annual report for the financial year ended 30 June 30 ended financial year the 2014. for annual report first its presents ereby as adopted formal terms of reference, which are regularly updated and approved by Council approved and of reference,appropriate formal terms updated to are regularly provide adopted which as e

D D rt year alen alen # P # AC i o ttee is governed by the City delegations, which require that M which delegations, City by the is governed

e A A A A D D D D D D D D nd f A A N A A N N A A A A N

C C C C e t d 30Jun (M h e Muni P 21 1 6 2 14 24 22 15 16 15 P AC) AC m P e AC 2014 I nt s) ernal Audit were also held. Representatives from the the from Representatives held. also were Audit ernal eetings were held. were eetings c ip Corporate Services • • Corporate Services Community Services Economic, Environmental and Spatial N • • D • N other committees Membership of

Finance EnergyandClimateChangeCommittee Economiccluster RulesCommittee ew Maycomemberfor isciplinary Committee ew Finance N al aming Committee

P P C u P C Chairperson bl INTEGRATED A INTEGRATED P P i C C P c C P A I H AC nt ealth ernal Audit attended all M attended Audit ernal reports quarterly to Council committee’s the quarterly on reports cc nn u a l R oun e P po lanning rt |2 ts 8 of9=89% 10 of=100% 9 of10=90% 9 of10=90% 1 of=100% 10 of=100% 10 of=100% 1 of=100% Meeting attendance 9 of=100% 9 of10=90% 8 of10=80% 10 of=100% 013/14 P O ortfolio Committee( ffi ce of the City Manager,ce City of the

P AC m N at eetings. Three Three eetings. ional Treasuryional P C) 207

APPENDICES ANNUAL FINANCIAL FINANCIAL PERFORMANCE AND ORGANISATIONAL DEVELOPMENT 2012/13 GOVERNANCE, COMPLIANCE OVERVIEW OF WORLD DESIGN CAPITAL STATEMENTS ECONOMIC SUSTAINABILITY PERFORMANCE REVIEW AND RISK MANAGEMENT THE CITY OF CAPE TOWN 2014 Mandate, method of work and reporting Quarterly reporting on MPAC’s activities as per the annual work MPAC’s efforts are directed by Council, and the committee programme were succinctly presented to Council for three is authorised to investigate any matter referred to it. This of the four quarters. This report, which replaces the fourth includes instructing other councillors, management and other quarter’s report, serves as a cumulative activity statement for employees of Council to be present at meetings and having the year ended 30 June 2014. access to any information they require from any councillor or employee. MPAC ensures that all existing internal alternative Rndeview a evaluation of the dispute resolution processes of the City have been exhausted annual report before proceeding with investigations. MPAC considered the 2012/13 annual report of the City of Cape Follow-up is performed via the meeting’s outstanding-matters Town and its municipal entity, and raised issues of concern with schedule to determine if action has been taken to implement the City’s executive management. MPAC recommended that recommendations. The annual MPAC work programme defines Council adopt the oversight report and approve the annual report the committee’s activities for any given year. without reservations. This was completed within the legislated timeframes, and was approved by Council in March 2014. Although MPAC has no executive powers, their findings and recommendations are escalated to the appropriate executive Performance assessment authority. MPAC considers the report of the subcommittee at a main MPAC meeting, and submits a report containing An annual evaluation of the MPAC’s effectiveness is conducted recommendations to Council for final decision-making. The via an annual assessment of performance completed by immediate reporting line of MPAC is to the Speaker of Council. means of a self-assessment and a stakeholder assessment by representatives from Council through the Office of the Speaker. Responsibility The performance assessment conducted for the 2012/13 MPAC is pleased to report that it has, as far as possible, complied financial year showed a calculated overall performance outcome with its responsibilities arising from its mandate, delegations with a rating of ‘excellent’. This assessment is completed from and terms of reference. September to November to allow for the areas for improvement to be included in the annual work programme, which is reviewed Advancements, updates and leading practices required the annually for the following calendar year. All improvements for committee to revisit the terms of reference during 2013/14, the 2012/13 financial year were included in the annual work which should be finalised early in 2014/15. programme for 2014.

Activities and outputs for the year

Table 5.3: MPAC activities and outputs for the year Activities Outputs Meetings and • 10 ordinary meetings were held. workshops • Three subcommittees were active to investigate irregular, fruitless and wasteful expenditure. • Four workshops were held to: – formalise the revised MPAC terms of reference; and – define governance improvements for the 2014 calendar year. Reporting • Two reports were approved by Council for investigation by MPAC in terms of section 32 and 102 of the MFMA. • Oversight process (section 129 of the MFMA) – The oversight report in terms of the 2012/13 annual report was supported and adopted by Council at a meeting held in March 2014 (see item C34/03/14). – The MPAC tracked and followed up on the implementation of corrective actions by departments in terms of the committee’s resolutions on the 2012/13 oversight report. Training and • In September 2013, two MPAC councillors attended the MPAC members’ training provided by Province, the capacity-building Association of Public Accounts Committees and the Office of the Auditor-General. • In December 2013, the MPAC chairperson made a presentation to the South African Local Government Association. • In January 2014, refresher training was provided on councillors’ oversight role and responsibilities. • On 13 June 2014, an induction programme was completed for Councillors Pienaar and Isaacs. Performance • A performance assessment of the MPAC members and committee activities was performed in November 2013. assessment

Conclusion We believe that the City is committed to good governance, and the MPAC activities actively contribute to the achievement of the IDP objective of a well-run city.

Councillor W Mxolose MPAC Chairperson

208 INTEGRATED Annual Report | 2013/14 Appendix E: List of abbreviations, tables and figures figures and tables abbreviations, of List E: Appendix ward and subcouncil per budget D: Capital Appendix Appendix C: CTICC Performance scorecard forthe2013/14financialyear Appendix B: 2013/14 Annual Performance Cape ManagementReport –Cityof Town indicators performance scorecard corporate for Definitions A: Appendix APPENDICES 226 224 222 216 210

Indicator IDP Indicator definition 1.A Percentage of 1.1(e) Percentage of applications approved within statutory timeframes (30 – 60 days). The objective is to improve approval time of building plans the applications. This improvement is in the trend over the course of the five-year term of the IDP, but targeted annually as the approved within weighted average percentage achieved for the specific year. The approval of building plans is measured within the statutory statutory timeframes time frames of <500 m2 (30 days) and >500 m2 (60 days). See section A7 of the National Building Regulations Act 103 of 1977. (30– 60 days) Date and time-stamped data: A cut-off date of three days of the next month is allowed for the capturing of the previous month’s production (i.e. 30th or 31st day of the month). Statistical data will be extracted on the fourth day, with a date and time stamp, and reported accordingly as a weighted average percentage for the two categories of building plans. 1.B Percentage spend of 1.2(b) Percentage reflecting year-to-date spend/total budget less any contingent liabilities relating to the capital budget. capital budget The total budget is the Council-approved adjusted budget at the time of the measurement. Contingent liabilities are only identified at the year end. 1.C Rand value of 1.2(b) Investment in engineering infrastructure relates to growth, refurbishment and replacement of water, sanitation, capital invested electricity, solid waste (removal and disposal), roads, stormwater, transport and broadband infrastructure. in engineering infrastructure 1.D Percentage of 1.2(b) Repairs and maintenance expressed as a percentage of the total repairs and maintenance operating budget. operating budget allocated to repairs Maintenance is defined as the actions required for an asset to achieve its expected useful life. Planned maintenance and maintenance includes asset inspection and measures to prevent known failure modes, and can be time- or condition-based. Repairs are actions undertaken to restore an asset to its previous condition after failure or damage. Expenses on maintenance and repairs are considered operating expenditure. 1.E Percentage spend 1.2(b) Percentage reflecting year-to-date spend (including secondary cost)/total repairs and maintenance budget. on repairs and maintenance Note that the in-year reporting during the financial year will be indicated as a trend (year-to-date spend). Maintenance is defined as the actions required for an asset to achieve its expected useful life. Planned maintenance includes asset inspection and measures to prevent known failure modes, and can be time- or condition-based. Repairs are actions undertaken to restore an asset to its previous condition after failure or damage. Expenses on maintenance and repairs are considered operating expenditure. 1.F Number of 1.2(b) This indicator reflects the number of outstanding valid applications, expressed as a percentage of total number of active outstanding valid billings for the service (where downpayment has been received) for water services (where valid applications translate into applications for water an active account) for domestic customers, as extracted from the City of Cape Town’s SAP database. services, expressed as a percentage Proxy measure for national key performance indicator (NKPI). of total number of billings for the service 1.G Number of 1.2(c) This indicator reflects the number of outstanding valid applications (where downpayment has been received) for outstanding valid sewerage services (where valid applications translate into an active account), expressed as a percentage of total number applications for of active billings for the service. Billing equates to active contract accounts (sewerage services) for domestic customers, sewerage services, as extracted from the City of Cape Town’s SAP database. expressed as a percentage of total Proxy measure for NKPI. number of billings for the service 1.H Number of 1.2(c) This indicator reflects the number of outstanding valid applications (where downpayment has been received) for outstanding valid electricity services (meter and prepaid) (where valid applications translate into an active account), expressed as a applications for percentage of total number of active billings for the service. electricity services, expressed as a Proxy measure for NKPI. percentage of total number of billings for the service 1.I Number of 1.2(c) This indicator reflects the number of outstanding valid applications (C3 notifications) for a new refuse collection service outstanding valid at the end of a reporting period, expressed as a percentage of total number of active billings for formal residential refuse applications for collection services as at the end of the same reporting period. Billing equates to active contract accounts (formal kerbside refuse collection refuse collection service) for domestic customers, as extracted from the City of Cape Town’s SAP database. service, expressed as a percentage of total Proxy measure for NKPI. number of billings for the service 1.J Number of EPWP 1.2(d) This indicator measures the number of job opportunities created through the EPWP. job opportunities created An EPWP job opportunity is paid work created for an individual on an EPWP project for any period of time, within the employment conditions of the Code of Good Practice for Special Public Works Programmes.

210 INTEGRATED Annual Report | 2013/14

Indicator IDP Indicator definition 2014 1.K Percentage of treated 1.3(b) The percentage of treated potable water not billed pertains to non-revenue water. This is the volume of potable water that potable water not is treated but is either lost or not billed, expressed as a percentage of total potable water treated. billed CAPITAL DESIGN WORLD It is calculated on a 12-month rolling basis in order to smooth out short-term fluctuations. The aim is to reduce the percentage of treated potable water not billed over the planned period, and is reflected in the targets. 1.L Number of passenger 1.4(c) The uptake of the MyCiTi transport system will be determined by the demand. journeys on the MyCiTi public Definition of a passenger trip is calculated from the first boarding of a bus at a feeder stop or main trunk station to the transport system last exit from a bus at a feeder stop or main station, and includes any transfers between buses (single journey). OVERVIEW OF 1.M Percentage 1.5(a) This indicator measures the percentage of the weighted average of the components below: THE CITY OF CAPE TOWN development of an – Development of a comprehensive immovable property asset register immovable property asset management – Development of an immovable property asset management compliance framework framework – Development of a centralised custodial role for immovable property asset management (communication) – Identification of all strategic immovable property assets – Development of a medium-term (five-to-10-year) strategy for the release of immovable property – The strategic acquisition and holding (land-banking) of new immovable property assets 1.N Number of external 1.6(a) This indicator measures the number of learning opportunities created for unemployed youth as a contribution to the job trainee and bursary creation initiative and provision of real world-of-work exposure to graduates.

opportunities MANAGEMENT RISK AND created This includes external bursaries awarded, in-service student training opportunities, graduate internships, learnerships COMPLIANCE GOVERNANCE, and apprenticeships. There are two measures under this indicator: Measure (a) includes external bursars, in-service student trainees, graduate interns and learners (learnership beneficiaries). Measure (b) includes apprentices.

2.A Community 2.4(a) This indicator measures community perception in respect of the prevailing levels of general disorder in the city. 2012/13 satisfaction survey Antisocial behaviour and disorder are concepts frequently used in the law enforcement environment to describe the

(score 1 – 5) – safety prevailing sense of lawlessness in a particular area, and refer to minor crimes, by-law offences, nuisances and traffic REVIEWPERFORMANCE and security offences that have a direct impact on residents’ quality of life. The City’s community satisfaction survey measures public perception around a number of these issues, including: • visible presence of traffic enforcement; • action taken against illegal land invasions; • action taken against illegal dumping; • acting on complaints relating to noise and other disturbances; and • by-laws being enforced. Total score in respect of the section in the survey that relates to antisocial behaviour and general disorder. Questionnaires

completed by residents as part of the City’s community survey, which inter alia measures public perception around the DEVELOPMENT ORGANISATIONAL following: • Traffic enforcement • Illegal land invasion • Illegal dumping • Noise and disturbances • General enforcement of the City’s by-laws 2.B Reduce number of 2.1(a) This indicator measures the decrease of vehicle accidents in the five identified highest-frequency accident locations. accidents at five These locations are: ECONOMIC SUSTAINABILITYECONOMIC

highest-frequency • M7 x Voortrekker Road AND PERFORMANCE FINANCIAL intersections • N7 x Bosmansdam Road • Section Street x Koeberg Road • Cannon Road x Voortrekker Road x Koeberg Road (Maitland) • Victoria Road x N2 west (Somerset West) 2.C Percentage response 2.1(a) Percentage response times for fire incidents within 14 minutes from call receipt up to arrival.

times for fire STATEMENTS incidents within FINANCIAL ANNUAL 14 minutes from call receipt up to arrival APPENDICES

INTEGRATED Annual Report | 2013/14 211 Indicator IDP Indicator definition 2.D Number of 2.2 This indicator measures the number of specialised units in the three policing departments, i.e Metro Police, Traffic and operational Law Enforcement, which the Safety and Security Directorate managed to maintain as operationally active and fully specialised units capable of delivering on their specialised mandates. maintained 2.E Percentage budget 2.3(a) The indicator measures the percentage budget spent on the integrated information management system. spent on integrated information management system 2.F Percentage staff 2.4(a) This indicator measures the percentage of members of the Metro Police, Traffic and Law Enforcement departments who successfully have undergone any legislative training intervention that is directly relevant to the performance of their operational completing legislative duties, i.e. occupation-specific training interventions. occupation-specific training interventions 2.G Percentage of 2.5(a) This indicator measures the percentage satisfaction with the City’s assistance to neighbourhood watches. neighbourhood watch satisfaction survey 3.A Number of social 3.1(a) The indicator refers to the number of social developmental programmes implemented. Seven programmes have been development identified, and each will consist of a number of projects and interventions. The programmes are listed below: programmes implemented – Youth development – ECD training – Social entrepreneurship – Vulnerable groups (senior citizens, gender and disability) – Street people – Substance abuse – Poverty alleviation and reduction 3.B Nu mber of recreation 3.1(a) A recreation hub is a community facility that focuses on implementing a variety of sport and recreation activities for at hubs where activities least five days a week, for at least three hours per day. Activities will target all sectors of the community, namely children, are held on a youth and adults. Activities will be implemented by staff, volunteers, NGOs, clubs and federations. minimum of five days a week 3.C Number of human 3.2(d) A human settlements opportunity is defined under the following three categories: settlements opportunities (a) A site is any property providing a municipal service on an individual basis to a household, including households in provided per year multi-storey units, on high-density residential sites as well as other non-residential sites relating to integrated human settlements development, where the main source of funding is the Urban Settlements Development Grant (USDG) in terms of the Division of Revenue Act (DORA). (b) Top structures are any built structure providing shelter to a household in a human settlements development by means of any national housing programme, where the main source of funding is the Human Settlements Development Grant (HSDG) in terms of DORA. (c) Other refers to the number of existing rental stock units undergoing major upgrades, and any number of households provided with shared services and other services in the backyarder, re-blocking and informal settlements upgrade programmes. Definition of a human settlements opportunity: A human settlements opportunity means incremental access to* and/or delivery of one of the following housing products: (A) Subsidy housing (BNG), which provides at least a 40 m² house, a fully serviced residential site, and may also include high-density residential sites relating to integrated human settlements development, as well as other non-residential sites relating to integrated human settlements development (B) Incremental housing, which provides a serviced site with or without tenure (C) Rental housing, which is new CRUs, upgrades and redevelopment of existing rental units and hostels (D) PHP is beneficiaries who maximise their housing subsidy by building or organising the building of their homes themselves (E) Land restitution includes land provided to valid claimants in terms of Council resolutions or court decisions (F) Social housing is new rental units, delivered by the City’s social housing partners (G) Gap housing is a serviced plot, a completed unit for sale, or affordable units for sale (H) Re-blocking of informal settlements is the reconfiguration of the layout of settlements to allow for improved access and levels of services. *’Access to’ is as contemplated in section 26(1) of the Constitution of the Republic of South Africa, 1996: ‘Everyone has the right to have access to adequate housing.’ Note: An opportunity is specifically defined above, and is only counted at a point when specific evidence is available for auditing purposes. The delivery targets reflected on the corporate scorecard and the service delivery and budget implementation plans (SDBIPs) only reflect delivery by the City. In some instances, delivery of a serviced site and a top structure may be on the same property, but is viewed as two opportunities (serviced site and top structure) to align with reporting requirements on expenditure of grant funding as two separate milestones. A separate report (not for auditing purposes) for information to Council will reflect total delivery in the City, including delivery by Province (N2, PHP, gap, other projects) and social housing and restitution cases facilitated by the City.

212 INTEGRATED Annual Report | 2013/14 Indicator IDP Indicator definition 3.D Nu mber of deeds 3.3(a) This indicator refers to the registration of transferrable rental stock to qualifying tenants. The evidence for this indicator of sale agreements will be signed sales agreements. signed with identified beneficiaries on 2014 transferrable rental

units CAPITAL DESIGN WORLD 3.E Improve basic services Number of water services 3.4(b) This indicator reflects the number of taps provided in informal settlements and for backyarders in City rental stock (pilot) points (taps) provided during the period under review. Certain taps may, however, have been vandalised or removed after provision. – Backyarder provision based on one tap per backyard property, which could be serving several households. Number of sanitation 3.4(b) This indicator reflects the number of toilets provided in informal settlements and for backyarders in City rental stock service points (toilets) (pilot) during the period under review. Certain toilets may, however, have been vandalised or removed after provision. OVERVIEW OF

provided THE CITY OF CAPE TOWN – Backyarder provision based on one toilet per backyard property, which could be serving several households. Percentage of informal 3.4(b) This indicator reflects the percentage of informal settlements receiving a weekly door-to-door refuse removal collection settlements receiving service for the period under review. door-to-door refuse collection service The collection of domestic refuse in informal settlements is done through contract services, employing local labour. Three-year contracts are awarded to a legitimate main contractor through the procurement tender process. Percentage of known 3.4(b) The Solid Waste Management Department has developed a pictorial standard of cleanliness to be able to hold the service informal settlements that provider in informal settlements to a particular level or standard of service provision. The standard of cleanliness is a achieve each of the four qualitative performance management tool, with level 1 denoting the desired standard of cleanliness, level 2 denoting a different standards of fair/reasonable standard of cleanliness, level 3 denoting an unacceptable standard of cleanliness, and level 4 denoting a cleanliness totally unacceptable standard of cleanliness. MANAGEMENT RISK AND GOVERNANCE, COMPLIANCE COMPLIANCE GOVERNANCE, Levels 1 to 4 3.F Number of electricity 3.4(b) This indicator reflects the number of subsidised connections installed per annum in informal settlements, rental stock subsidised backyarders (pilot) and low-cost housing. connections installed 3.G Percentage 3.5(a) Measure of potable water-sample pass rate according to SANS 241.

compliance with 2012/13 drinking-water

quality standards REVIEWPERFORMANCE 3.H Number of days when 3.6(a) Description of indicator: Any day when any one of the criteria pollutants at any one of up to a maximum of 13* air quality air pollution exceeds monitoring stations in the city exceeds RSA ambient air quality standards. Layman’s description: The number of days RSA ambient air where one of the identified air pollution particles is above the levels set by the RSA ambient air quality standards. quality standards 3.I New smear-positive 3.7(a) The indicator measures the number of new smear-positive pulmonary TB cases started on treatment for whom there is TB cure rate bacteriological confirmation that the patient has responded to treatment and can be considered cured. Numerator: Number of new smear-positive pulmonary TB cases started on treatment for whom there is bacteriological confirmation that the patient has responded to treatment and can be considered cured. Denominator: Number of new smear-positive pulmonary TB cases. ORGANISATIONAL DEVELOPMENT ORGANISATIONAL The percentage indicates the previous financial year’s figures. Example: for 2012/13, it will be the financial year 2011/12 etc. 3.J Number of new 3.8(a) The number of new clients who seek help for substance abuse being screened in a first interview at the City’s outpatient clients screened at treatment sites. the substance abuse outpatient treatment centres 4.A P ercentage 4.1(a) Measure the percentage adherence to citywide service standards based on all external notifications. adherence to Citywide service standard based on all ECONOMIC SUSTAINABILITYECONOMIC

external notifications AND PERFORMANCE FINANCIAL 4.B C ustomer satisfaction 4.2(a) A statistically valid, scientifically defensible score from the annual survey of residents’ perceptions of the overall survey performance of the services provided at community facilities, measured by calculating the average of the responses to a (score 1 – 5 Likert number of survey questions relating to community facilities. scale) – community facilities The measure is given against the non-symmetrical Likert scale, where 1 is poor, 2 is fair, 3 is good, 4 is very good, and 5 is excellent.

The objective is to improve the current customer satisfaction level measured through the CSS (score 1-5) from the STATEMENTS 3,1 baseline set for 2010/11, to a 3,2 target in 2012/13. The annual improvement is calculated by determining the FINANCIAL ANNUAL difference between the average customer satisfaction scores of the different financial years. APPENDICES

INTEGRATED Annual Report | 2013/14 213 Indicator IDP Indicator definition 5.A nu mber of municipal 5.1(a) The indicator measures the number of municipal meetings open to the public to maintain transparency in the day-to-day meetings open to the governance of the municipality. public 5.B Percentage of 5.2(b) Ipsos-Markinor defines fully engaged staff as ‘employees who are truly motivated and will go above and beyond the employees who are call of duty to delight [their] customers’ and ‘the best ambassadors to the marketplace’. This indicator measures the truly motivated and percentage of staff who fall in this category, and is based on the biennial staff engagement survey. will go above and beyond the call of The unit of measure is the percentage as determined in a staff satisfaction survey. The frequency of measurement is duty, as measured every two years. in a biennial staff Formula: engagement survey The formula is the proprietary copyright of the independent service provider, Ipsos-Markinor. It is based on the responses to the survey that they have undertaken. Public-sector score = 23%; private-sector score = 33% 5.C Community 5.2(c) A statistically valid, scientifically defensible score from the annual survey of residents’ perceptions of the overall satisfaction survey performance of the services provided by the City of Cape Town. (score 1 – 5) – citywide The measure is given against the non-symmetrical Likert scale, where 1 is poor, 2 is fair, 3 is good, 4 is very good, and 5 is excellent. The objective is to improve the current customer satisfaction level measured through a community satisfaction survey (score 1 – 5) from the 2,4 baseline set for 2007/8 to 2,8 in 2013/14. The improvement is calculated by taking the difference between the different financial years. 5.D Percentage of people 5.2(b) The indicator measures the percentage of people from employment equity target groups employed in the three highest from employment levels of management in compliance with the City’s approved employment equity plan. Each directorate contributes equity target groups to the corporate achievement of targets and goals by implementing its own objectives of quantitative and qualitative employed in the three goal-setting. highest levels of management in compliance with the City’s approved employment equity plan 5.E Percentage 5.2(b) A workplace skills plan is a document that outlines the planned education, training and development interventions for budget spent on the organisation. Its purpose is to formally plan and allocate budget for appropriate training interventions, which will implementation of address the needs arising from the local government skills sector plan, the City’s strategic requirements as contained workplace skills plan in the IDP and the individual departmental staffing strategies, as well as individual employees’ personal development for the City plans. The workplace skills plan shall also take into account the employment equity plan, ensuring incorporation of relevant developmental equity interventions into the plan. Formula: Measured against training budget. 5.F Opinion of the Auditor- 5.3(a) This indicator measures good governance and accounting practices, and will be evaluated and considered by the Auditor- General General in determining his opinion. An unqualified audit opinion refers to the position where the auditor, having completed his audit, has no reservations as to the fairness of presentation of financial statements and their conformity with generally recognised accounting practices. This is referred to as a clean opinion. Alternatively, in relation to a qualified audit opinion, the Auditor-General would issue this opinion on the financial statements as a whole, or in part, if these are not prepared in accordance with generally recognised accounting practices or one or more areas of the financial statements could not be audited. Future audit opinions will cover the audit of predetermined objectives. 5.G Op inion of 5.3(a) A report that reflects an institution’s creditworthiness to repay long- and short-term liabilities. Credit rating is an analysis independent rating of the City’s key financial data performed by an independent agency to assess its ability to meet short- and long-term agency financial obligations. Indicator standard/norm/benchmark The highest rating possible for local government, which is also subject to the country’s sovereign rating. 5.H Ratio of cost coverage 5.3(a) Total cash and investments (short term), less restricted cash to monthly operating expenditure. maintained

5.I Net debtors to annual 5.3(a) This is a calculation where we take the net current debtors divided by total operating revenue. income [ratio of outstanding service debtors to revenue actually received for services] 5.J Debt coverage by own 5.3(a) For this calculation, the City takes total debt divided by total annual operating income. billed revenue

214 INTEGRATED Annual Report | 2013/14

INTEGRATED Annual Report | 2013/14 215 Appendix b 2013/14 Annual Performance Management Report – City of Cape Town Rating Key: ✔ Well above ✦ Target achieved ● On target ▲ Below ✘ Well below Financial year under review Previous financial year 2012/13 2013/14 Annual Actual Annual Actual target performance target performance Rating Indicator 2012/13 2012/13 2013/14 2013/14 2013/14 Reason for variance Remedial action 1.A Percentage of building plans approved within statutory timeframes (30 – 60 days) 80% 80,7% 82% 83,64% ✦ Target achieved Maintain the momentum Transport for Cape Town The main reasons for the lower-than-expected expenditure are the later-than-planned delivery of MyCiTi buses as a result of the industrial action in 2013, the delays in compensation negotiations with existing public transport operators, extremely slow and delayed supply chain management processes due to legal and audit concerns, and the impacts of numerous contractor liquidations. Transport for Cape Town Cash flows were reviewed in the January 2014 adjustments budget. Human Settlements No further remedial or corrective steps are possible. Invoices for • Community residential unit upgrades: The incidence of gang violence has become abnormally high, resulting in several site MyCiTi vehicles delivered before 30 June 2014 will be processed by shutdowns marring consistent progress. 11 July 2014, which will improve capital spend significantly. 1.B Percentage spend of capital budget 90% 94,3% 91% 80,23% ✘ • The insolvency of a major contractor has created further challenges with expenditure rate. Human Settlements • Fisantekraal Garden Cities project: Garden Cities has submitted an invoice to be processed for payment. Fisantekraal Garden Cities project: Invoice will be processed in • Protest action on some of the bigger backyard projects caused serious delays, which affected the expenditure rate. 2013/14, if the relevant contracts are concluded by Province. • Various other City Human Settlements projects have been delayed and, where possible, funds have been transferred to those projects Utility Services running ahead of projected budget allocation. Possible roll-over of contractually committed amounts to 2014/15 (where contracts are not completed by 30 June 2014). Utility Services Provisional year-to-date variance mainly due to delays in various projects. For more specific detail regarding reason for variance – see the financial monitoring report for June 2014. 1.C Rand value of capital invested in engineering infrastructure R1,9 billion R2,1 billion R1,8 billion R2,2 billion ✔ Well above target Maintain the momentum

y 1.D Percentage of operating budget allocated to repairs and maintenance 7,5% 7,8% 8,19% 8,23% ✦ Target achieved Maintain the momentum it c 1.E Percentage spend on repairs and maintenance 100% 104,68% 100% 101,84% ✦ Target achieved Maintain the momentum y The Water and Sanitation Department will enhance communication

nit with developers to ensure civil works on site are performed u 1.F Number of outstanding valid applications for water services, expressed The slight variance was caused by an increase in the number of new applications for developments, and some sites were not ready for timeously. In addition, investigations are being undertaken into <1% 0,65% <1% 1,01% ▲ as a percentage of total number of billings for the service installation. delays due to insufficient information supplied. Responsible person: Bertus Saayman Due date: 1st quarter 2014/15 1.G Number of outstanding valid applications for sewerage services, expressed n opport <1% 0,57% <1% 0,62% ✔ Well above target Maintain the momentum

A as a percentage of total number of billings for the service 1.H Number of outstanding valid applications for electricity services, expressed <1% 0,13% <1% 0,1% ✔ Well above target Maintain the momentum as a percentageof total number of billings for the service 1.I Number of outstanding valid applications for refuse collection service, expressed <1% 0% <1% 0% ✔ Well above target Maintain the momentum as a percentage of total billings for the service 1.J Number of Expanded Public Works Programme (EPWP) job opportunities created 35 000 35 556 37 500 38 305 ✦ Target achieved Maintain the momentum To calculate percentage non-revenue water (% NRW), NRW (the numerator) is divided by total water treated (the denominator). Total water Future non-revenue water figures (water not billed) will be closely treated (the denominator) declined significantly over the past year due to the successful implementation of water demand management monitored in order to determine whether the recent increases 1.K Percentage of treated potable water not billed New – 20,2% 21,84% ▲ strategies, as well as wetter weather patterns experienced over this period. Although NRW (the numerator) has generally been declining persist. since December 2009, it increased slightly during the last half of the reporting period. This, together with denominator decline, resulted in a Responsible person: Peter Flower percentage NRW slightly higher than the projected target. Due date: Ongoing 1.L Number of passenger journeys on the MyCiTi public transport system 2 450 000 3 113 329 5,3 million 7,7 million ✔ Well above target Maintain the momentum 1.M Percentage development of an immovable property asset management framework New _ 48,66% 48,66% ● On target Maintain the momentum 1.N Number of external trainee and bursary opportunities created 1.N(a) Number of external trainee and bursary opportunities (excluding apprentices) 625 954 700 1 160 ✔ Well above target Maintain the momentum 1.N(b) Number of apprentices 230 314 250 327 ✔ Well above target Maintain the momentum 2.A Community satisfaction survey (score 1 to 5) safety and security 2,7 2,5 2,8 3,1 ✔ Well above target Maintain the momentum 2.B Reduce number of accidents at five highest-frequency intersections 285 321 367 178 ✔ Well above target Maintain the momentum y

it 2.C Percentage response times for fire incidents within 14 mins 80% 84% 80% 83% ✦ Target achieved Maintain the momentum c

e 2.D Number of operational specialised units maintained New _ 14 14 ● On target Maintain the momentum f 2.E Percentage budget spent on integrated information management system New _ 15% 20,84% ✔ Well above target Maintain the momentum sa

A 2.F Percentage staff successfully completing occupational-specific training interventions New _ 70% 73,28% ✦ Target achieved Maintain the momentum 2.G Percentage of neighbourhood watch satisfaction survey New _ 60% 93,1% ✔ Well above target Maintain the momentum

216 INTEGRATED Annual Report | 2013/14 Appendix b 2013/14 Annual Performance Management Report – City of Cape Town Rating Key: ✔ Well above ✦ Target achieved ● On target ▲ Below ✘ Well below

Financial year under review 2014 Previous financial year 2012/13 2013/14 Annual Actual Annual Actual WORLD DESIGN CAPITAL DESIGN WORLD target performance target performance Rating Indicator 2012/13 2012/13 2013/14 2013/14 2013/14 Reason for variance Remedial action 1.A Percentage of building plans approved within statutory timeframes (30 – 60 days) 80% 80,7% 82% 83,64% ✦ Target achieved Maintain the momentum Transport for Cape Town The main reasons for the lower-than-expected expenditure are the later-than-planned delivery of MyCiTi buses as a result of the industrial action in 2013, the delays in compensation negotiations with existing public transport operators, extremely slow and delayed supply chain management processes due to legal and audit concerns, and the impacts of numerous contractor liquidations. Transport for Cape Town Cash flows were reviewed in the January 2014 adjustments budget. Human Settlements No further remedial or corrective steps are possible. Invoices for OVERVIEW OF • Community residential unit upgrades: The incidence of gang violence has become abnormally high, resulting in several site MyCiTi vehicles delivered before 30 June 2014 will be processed by shutdowns marring consistent progress. 11 July 2014, which will improve capital spend significantly. THE CITY OF CAPE TOWN 1.B Percentage spend of capital budget 90% 94,3% 91% 80,23% ✘ • The insolvency of a major contractor has created further challenges with expenditure rate. Human Settlements • Fisantekraal Garden Cities project: Garden Cities has submitted an invoice to be processed for payment. Fisantekraal Garden Cities project: Invoice will be processed in • Protest action on some of the bigger backyard projects caused serious delays, which affected the expenditure rate. 2013/14, if the relevant contracts are concluded by Province. • Various other City Human Settlements projects have been delayed and, where possible, funds have been transferred to those projects Utility Services running ahead of projected budget allocation. Possible roll-over of contractually committed amounts to 2014/15 (where contracts are not completed by 30 June 2014). Utility Services Provisional year-to-date variance mainly due to delays in various projects. For more specific detail regarding reason for variance – see the financial monitoring report for June 2014. 1.C Rand value of capital invested in engineering infrastructure R1,9 billion R2,1 billion R1,8 billion R2,2 billion ✔ Well above target Maintain the momentum y ✦ MANAGEMENT RISK AND

1.D Percentage of operating budget allocated to repairs and maintenance 7,5% 7,8% 8,19% 8,23% Target achieved Maintain the momentum COMPLIANCE GOVERNANCE,

c it 1.E Percentage spend on repairs and maintenance 100% 104,68% 100% 101,84% ✦ Target achieved Maintain the momentum y The Water and Sanitation Department will enhance communication with developers to ensure civil works on site are performed 1.F Number of outstanding valid applications for water services, expressed The slight variance was caused by an increase in the number of new applications for developments, and some sites were not ready for timeously. In addition, investigations are being undertaken into <1% 0,65% <1% 1,01% ▲ as a percentage of total number of billings for the service installation. delays due to insufficient information supplied. Responsible person: Bertus Saayman

Due date: 1st quarter 2014/15 2012/13 1.G Number of outstanding valid applications for sewerage services, expressed <1% 0,57% <1% 0,62% ✔ Well above target Maintain the momentum PERFORMANCE REVIEWPERFORMANCE u nit A n opport as a percentage of total number of billings for the service 1.H Number of outstanding valid applications for electricity services, expressed <1% 0,13% <1% 0,1% ✔ Well above target Maintain the momentum as a percentageof total number of billings for the service 1.I Number of outstanding valid applications for refuse collection service, expressed <1% 0% <1% 0% ✔ Well above target Maintain the momentum as a percentage of total billings for the service 1.J Number of Expanded Public Works Programme (EPWP) job opportunities created 35 000 35 556 37 500 38 305 ✦ Target achieved Maintain the momentum To calculate percentage non-revenue water (% NRW), NRW (the numerator) is divided by total water treated (the denominator). Total water Future non-revenue water figures (water not billed) will be closely treated (the denominator) declined significantly over the past year due to the successful implementation of water demand management monitored in order to determine whether the recent increases 1.K Percentage of treated potable water not billed New – 20,2% 21,84% ▲ strategies, as well as wetter weather patterns experienced over this period. Although NRW (the numerator) has generally been declining persist. since December 2009, it increased slightly during the last half of the reporting period. This, together with denominator decline, resulted in a Responsible person: Peter Flower percentage NRW slightly higher than the projected target. Due date: Ongoing ORGANISATIONAL DEVELOPMENT ORGANISATIONAL 1.L Number of passenger journeys on the MyCiTi public transport system 2 450 000 3 113 329 5,3 million 7,7 million ✔ Well above target Maintain the momentum 1.M Percentage development of an immovable property asset management framework New _ 48,66% 48,66% ● On target Maintain the momentum 1.N Number of external trainee and bursary opportunities created 1.N(a) Number of external trainee and bursary opportunities (excluding apprentices) 625 954 700 1 160 ✔ Well above target Maintain the momentum 1.N(b) Number of apprentices 230 314 250 327 ✔ Well above target Maintain the momentum 2.A Community satisfaction survey (score 1 to 5) safety and security 2,7 2,5 2,8 3,1 ✔ Well above target Maintain the momentum 2.B Reduce number of accidents at five highest-frequency intersections 285 321 367 178 ✔ Well above target Maintain the momentum y 2.C Percentage response times for fire incidents within 14 mins 80% 84% 80% 83% ✦ Target achieved Maintain the momentum ECONOMIC SUSTAINABILITYECONOMIC

2.D Number of operational specialised units maintained New _ 14 14 ● On target Maintain the momentum AND PERFORMANCE FINANCIAL 2.E Percentage budget spent on integrated information management system New _ 15% 20,84% ✔ Well above target Maintain the momentum sa f e c it

INTEGRATED Annual Report | 2013/14 217 2013/14 Annual Performance Management Report – City of Cape Town continued Rating Key: ✔ Well above ✦ Target achieved ● On target ▲ Below ✘ Well below Financial year under review Previous financial year 2012/13 2013/14 Annual Actual Annual Actual target performance target performance Rating Indicator 2012/13 2012/13 2013/14 2013/14 2013/14 Reason for variance Remedial action 3.A Number of social development programmes implemented 7 7 7 7 ● On target Maintain the momentum 3.B Number of recreational hubs where activities are held on a minimum of five days 25 28 40 40 ● On target Maintain the momentum a week 3.C Number of housing opportunities provided per year: 6 071 6 391 4 400 5 718 ✔ Well above target Maintain the momentum Serviced sites • As agreed with Supply Chain Management, a shortened process is to be followed to appoint a new contractor to complete the outstanding civil works, after which the top • The Sir Lowry’s Pass project, which would have yielded 177 top structures, had to be put on hold, as the contractor for the civil works structure will be completed. (earthworks and underground services) defaulted. The latter resulted in a legal process to cancel this contract. • The applicable councillors have committed to unlock this Top structures 3 833 4 300 4 242 3 647 ✘ • The Bosasa project, which would have yielded 500 top structures, has been delayed by protracted protest actions, despite numerous protracted protest action. Contractors are on standby to meetings to reach an agreement to continue with the project. immediately commence with the construction as soon as this scenario is resolved. Responsible person: Johan Gerber Due date: End July 2014 The project will be re-evaluated, and new measures will be put in Other (community residential unit) upgrades and shared services provision to The roll-out of services to backyarders could not be delivered as planned due to various unforeseen circumstances, ie. the Langa project, place to ensure better implementation. 1 224 1 725 4 641 2 048 ✘ re-blocked informal settlements and backyarders which was not accepted by the community and can therefore no longer be rolled out. Responsible person: Johan Gerber Due date: End July 2014 The take-up is incredibly slow, and it can be deduced that those persons who wanted to take transfer have already done so, and the rest The Department continues attempts to convince tenants to take up are not prepared to take transfer. Some of the reasons given to Housing staff include the following: the offer available to them. A dedicated team of 15 staff members • Tenants want repairs and maintenance done before they take transfer. are working on this project full-time. In April 2014, Council 3.D Number of deeds-of-sale agreements signed with identified beneficiaries on approved further write-offs to make it easier for people to take New _ 2 500 1 046 ✘ • Tenants want a complete renovation as was done for the non-saleable flats. transferrable rental units transfer. Take-up, however, remains very slow, despite awareness y • Tenants state that they have no money to pay the rest of the transfer fees, insurance and admin costs, and in some instances also being created continuously. it balances on sale prices. c Responsible person: Grace Blouw • Tenants are not willing to take responsibility for insurance/maintenance and other responsibilities that go with homeownership. Due date: End July 2014 3.E Improve basic services aring Number of water services points (taps) provided 1 000 599 1 020 2 028 ✔ Well above target Maintain the momentum c ✔

A Number of sanitation service points (toilets) provided 3 000 5 043 3 100 5 916 Well above target Maintain the momentum Percentage of informal settlements receiving a door-to-door refuse collection service 204 204 99% 99,73% ✦ Target achieved Maintain the momentum

The Department is implementing an improvement project to provide additional services in informal settlements, which will Percentage of known informal settlements that achieve each of the four different improve the general state of cleanliness. The implementation of this The level 1 target definition requires a perfectly clean area. The level was set as a stretch target, which has proved to be difficult to achieve. standards of cleanliness: ≥5% 0,7% >1,0% 0,29% ✘ improved project is progressing well and the finalisation date is set The City’s contractors have only been able to maintain this level of cleanliness in a couple of instances with the resources at hand. Level 1 as June 2014. Responsible person: Claire McKinnon Due date: June 2014

Level 2 ≥52% 55,45% >59% 80,25% ✔ Well above target Maintain the momentum Level 3 ≤40% 42,82% <38% 18,05% ✔ Well above target Maintain the momentum Level 4 ≤3% 1,03% <2,2% 1,42% ✔ Well above target Maintain the momentum 3.F Number of electricity subsidised connections installed 2 200 918 1 500 4 391 ✔ Well above target Maintain the momentum 3.G Percentage compliance with drinking-water quality standards 98% 99,3% 98% 99,83% ✦ Target achieved Maintain the momentum 3.H Number of days when air pollution exceeds RSA ambient air quality standards <25 4 <25 0 ✔ Well above target Maintain the momentum 83% 83% 3.I New smear-positive TB cure rate 83% 84,2% ● On target Maintain the momentum (Q2 2013)

3.J Number of new clients screened at the substance abuse outpatient treatment centres New _ 1 520 1 621 ✦ Target achieved Maintain the momentum

218 INTEGRATED Annual Report | 2013/14

2013/14 Annual Performance Management Report – City of Cape Town continued Rating Key: ✔ Well above ✦ Target achieved ● On target ▲ Below ✘ Well below

Financial year under review 2014 Previous financial year 2012/13 2013/14 Annual Actual Annual Actual target performance target performance Rating CAPITAL DESIGN WORLD Indicator 2012/13 2012/13 2013/14 2013/14 2013/14 Reason for variance Remedial action 3.A Number of social development programmes implemented 7 7 7 7 ● On target Maintain the momentum 3.B Number of recreational hubs where activities are held on a minimum of five days 25 28 40 40 ● On target Maintain the momentum a week 3.C Number of housing opportunities provided per year: 6 071 6 391 4 400 5 718 ✔ Well above target Maintain the momentum Serviced sites

• As agreed with Supply Chain Management, a shortened OVERVIEW OF process is to be followed to appoint a new contractor to complete the outstanding civil works, after which the top THE CITY OF CAPE TOWN • The Sir Lowry’s Pass project, which would have yielded 177 top structures, had to be put on hold, as the contractor for the civil works structure will be completed. (earthworks and underground services) defaulted. The latter resulted in a legal process to cancel this contract. • The applicable councillors have committed to unlock this Top structures 3 833 4 300 4 242 3 647 ✘ • The Bosasa project, which would have yielded 500 top structures, has been delayed by protracted protest actions, despite numerous protracted protest action. Contractors are on standby to meetings to reach an agreement to continue with the project. immediately commence with the construction as soon as this scenario is resolved. Responsible person: Johan Gerber Due date: End July 2014 The project will be re-evaluated, and new measures will be put in Other (community residential unit) upgrades and shared services provision to The roll-out of services to backyarders could not be delivered as planned due to various unforeseen circumstances, ie. the Langa project, place to ensure better implementation. 1 224 1 725 4 641 2 048 ✘ re-blocked informal settlements and backyarders which was not accepted by the community and can therefore no longer be rolled out. Responsible person: Johan Gerber AND RISK MANAGEMENT RISK AND

Due date: End July 2014 COMPLIANCE GOVERNANCE, The take-up is incredibly slow, and it can be deduced that those persons who wanted to take transfer have already done so, and the rest The Department continues attempts to convince tenants to take up are not prepared to take transfer. Some of the reasons given to Housing staff include the following: the offer available to them. A dedicated team of 15 staff members • Tenants want repairs and maintenance done before they take transfer. are working on this project full-time. In April 2014, Council 3.D Number of deeds-of-sale agreements signed with identified beneficiaries on approved further write-offs to make it easier for people to take New _ 2 500 1 046 ✘ • Tenants want a complete renovation as was done for the non-saleable flats. transferrable rental units transfer. Take-up, however, remains very slow, despite awareness y • Tenants state that they have no money to pay the rest of the transfer fees, insurance and admin costs, and in some instances also being created continuously. balances on sale prices. Responsible person: Grace Blouw 2012/13 • Tenants are not willing to take responsibility for insurance/maintenance and other responsibilities that go with homeownership. Due date: End July 2014 3.E Improve basic services PERFORMANCE REVIEWPERFORMANCE Number of water services points (taps) provided 1 000 599 1 020 2 028 ✔ Well above target Maintain the momentum

c aring it ✔

83% 83% AND PERFORMANCE FINANCIAL 3.I New smear-positive TB cure rate 83% 84,2% ● On target Maintain the momentum (Q2 2013)

3.J Number of new clients screened at the substance abuse outpatient treatment centres New _ 1 520 1 621 ✦ Target achieved Maintain the momentum STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL APPENDICES

INTEGRATED Annual Report | 2013/14 219 2013/14 Annual Performance Management Report – City of Cape Town continued Rating Key: ✔ Well above ✦ Target achieved ● On target ▲ Below ✘ Well below Financial year under review Previous financial year 2012/13 2013/14 Annual Actual Annual Actual target performance target performance Rating Indicator 2012/13 2012/13 2013/14 2013/14 2013/14 Reason for variance Remedial action Revenue Department: Currently, every effort is being made to meet set targets. Finance Directorate achieved 89,23% against a 100% target. This is due to the underachievement of Revenue Department. Transport for Cape Town: The target of 100% remains a challenge. Review of the scenario is Revenue created 140 730 C3 notifications for 2013/14 and closed 139 446 (99,09%); not achieving the 100% was as a result of the delay important and will be facilitated in the future. in the rates clearance and the automation of the move in/move out (AMIMO) projects, including the refund backlogs. A concerted effort resulted in 8 800 (121,08%) C3s being closed in May 2014, and 9 717 (125,98%) in June 2014. Responsible person: Duncan Daries Due date: Ongoing Transport for Cape Town: Human Settlements: Y Some of the C3 notifications created involved work that, in some cases, warranted further investigation and often generated work that

IT The remedial action will have a dual approach: extended beyond the 22-day target. These notifications had to remain open while the work was being executed, and could only be closed • To restore the telephone lines and, for network access, a C once the work was completed. In some cases, contractors also had to be appointed, which extended beyond the 22-day target. E wireless network system at those depots. However, funding V 4.A Percentage adherence to Citywide service standards – external notifications 100% 96,98% 100% 93,77% ▲ Human Settlements: needs to be sourced (R1,5 m). SI The main reason for the delay in closing down C3 notifications is that two of our maintenance depots (Elsies River and Bishop Lavis), which Responsible person: Alida Kotzee (installation of WiFi) U

L deal with the largest number of C3 notifications, have been without telephone lines and access to the City’s network for the past six months. Due date: WiFi - depending on funding C This is due to the frequent theft of telephone lines and data cables. The service provider, Telkom, refuses to reinstall the cables and has also • An in-depth study of the habits of various maintenance depots IN

given us notice of a third maintenance depot (Heideveld) where they will be removing their infrastructure. Alternative measures were put in will be undertaken. place for staff to share computers with staff at nearby offices, which allowed us to deal with the urgent issues as they arose. Responsible person: Gasina Khan (in-depth study of apparent AN Utility Services: reasons) As part of the process of clearing the backlog, a bulk closure of items occurred in Water and Sanitation during the fourth quarter. This Due date: Preliminary report due end August 2014 subsequently reduced the Department’s ability to meet the target. As Water and Sanitation makes up a major component of overall Utility Services: notifications, this has had a key impact on the Directorate’s ability to achieve the target.” Resources will be prioritised to deal with the targeted closure. Responsible person: Pierre Maritz Due date: 30 September 2014 4.B Customer satisfaction survey community facilities (1 – 5 Likert) 3,2 3,1 3,1 3,2 ✦ Target achieved Maintain the momentum 5.A Number of municipal meetings open to the public New _ 174 193 ✔ Well above target Maintain the momentum The key factor identified in the drop in fully engaged employees is a feeling among employees that they are being required to do more with less and are responding by working harder, but that the sacrifices are becoming too costly. Staff are still behaving in a way that benefits the City, and combined levels of high engagement remain unchanged. However, without acknowledgement from the City that employees’ harder work is appreciated, motivation and service delivery are likely to be affected in the future. The primary intervention lies in intrinsic Remedial action has been taken in the form of the following: rewards of recognition. • A project plan and checklist for all executive directors and Notwithstanding the drop in the “fully engaged” factor, other indicators have continued to improve or remain high: senior managers 5.B Percentage of employees who are truly motivated and will go above and beyond the • 74% of staff believe the City is a leader in the local government sector. • Approval of the Reward and Recognition Policy Biennial target _ 39% 34,6% ✘ call of duty, as measured in a biennial staff engagement survey • 74% of staff believe the City is an employer of choice in the local government sector. • Intervention with the unions on grievances and realignment of • 79% of staff believe the City is one of the best-run municipalities in the local government sector. the workplace skills plan • 70% of staff believe the City is world-class. Responsible person: Justine Quince Due date: Ongoing • 79% of City staff are prepared to put in extra work when required. • 76% of City staff indicated that they are proud to work for the City. This is a strong indication of their personal commitment to the City’s vision, which has increased consistently over the past three surveys. y it 5.C Community satisfaction survey (score 1 – 5) citywide 2,8 2,9 2,8 2,9 ✦ Target achieved Maintain the momentum c

n Continuous monitoring of this indicator. Coupled with the guiding u EE presentations to all line directorates, the City’s Corporate Services Directorate is looking broadly at the City’s attraction and 5.D Percentage of people from employment equity target groups employed in the three The positions in levels 1 to 3 are characterised by scarce skills categories in terms of senior management and leadership. The City is not retention strategies. Succession planning, identification of talent ell highest levels of management in compliance with the City’s approved employment 72% 65,85% 78% 65,55% ✘ the only competitor for these skills, and despite the City attraction strategy, we are not always able to attract, appoint and retain designated in the designated groups at lower levels, and positioning them for w equity plan (EE) groups at this level. identified senior positions are seriously considered and an ongoing A -r priority. Responsible person: Michael Siyolo Due date: Ongoing (end of the EE plan) 5.E Percentage budget spent on implementation of workplace skills plan (WSP) for the City 95% 102,04% 95% 96,85% ✦ Target achieved Maintain the momentum 5.F Opinion of the Auditor-General Clean audit Clean audit Clean audit Clean audit ✦ Target achieved Maintain the momentum High investment City’s high credit High investment rating (subject High investment 5.G Opinion of independent rating agency rating reaffirmed as rating (subject to ✦ Target achieved Maintain the momentum to sovereign rating – Aa3 Aa3 on 2 April 2013 sovereign rating) rating) 5.H Ratio of cost coverage maintained 2:1 2,67:1 2:1 2,17:1 ✦ Target achieved Maintain the momentum 5.I Net debtors to annual income (ratio of outstanding service debtors to revenue actually 20,5% 20,31% 20,5% 19,9% ✦ Target achieved Maintain the momentum received for services) 5.J Debt coverage by own-billed revenue 2:1 3,24:1 2,5:1 4,13:1 ✦ Target achieved Maintain the momentum

220 INTEGRATED Annual Report | 2013/14 2013/14 Annual Performance Management Report – City of Cape Town continued Rating Key: ✔ Well above ✦ Target achieved ● On target ▲ Below ✘ Well below Financial year under review Previous financial year 2012/13 2013/14 2014 Annual Actual Annual Actual target performance target performance Rating

Indicator 2012/13 2012/13 2013/14 2013/14 2013/14 Reason for variance Remedial action CAPITAL DESIGN WORLD Revenue Department: Currently, every effort is being made to meet set targets. Finance Directorate achieved 89,23% against a 100% target. This is due to the underachievement of Revenue Department. Transport for Cape Town: The target of 100% remains a challenge. Review of the scenario is Revenue created 140 730 C3 notifications for 2013/14 and closed 139 446 (99,09%); not achieving the 100% was as a result of the delay important and will be facilitated in the future. in the rates clearance and the automation of the move in/move out (AMIMO) projects, including the refund backlogs. A concerted effort resulted in 8 800 (121,08%) C3s being closed in May 2014, and 9 717 (125,98%) in June 2014. Responsible person: Duncan Daries Due date: Ongoing Transport for Cape Town: Human Settlements: Y Some of the C3 notifications created involved work that, in some cases, warranted further investigation and often generated work that The remedial action will have a dual approach: OVERVIEW OF extended beyond the 22-day target. These notifications had to remain open while the work was being executed, and could only be closed • To restore the telephone lines and, for network access, a once the work was completed. In some cases, contractors also had to be appointed, which extended beyond the 22-day target. wireless network system at those depots. However, funding THE CITY OF CAPE TOWN 4.A Percentage adherence to Citywide service standards – external notifications 100% 96,98% 100% 93,77% ▲ Human Settlements: needs to be sourced (R1,5 m). The main reason for the delay in closing down C3 notifications is that two of our maintenance depots (Elsies River and Bishop Lavis), which Responsible person: Alida Kotzee (installation of WiFi) U SI V E C IT deal with the largest number of C3 notifications, have been without telephone lines and access to the City’s network for the past six months. Due date: WiFi - depending on funding This is due to the frequent theft of telephone lines and data cables. The service provider, Telkom, refuses to reinstall the cables and has also • An in-depth study of the habits of various maintenance depots given us notice of a third maintenance depot (Heideveld) where they will be removing their infrastructure. Alternative measures were put in will be undertaken. place for staff to share computers with staff at nearby offices, which allowed us to deal with the urgent issues as they arose. Responsible person: Gasina Khan (in-depth study of apparent AN IN C L Utility Services: reasons) As part of the process of clearing the backlog, a bulk closure of items occurred in Water and Sanitation during the fourth quarter. This Due date: Preliminary report due end August 2014 subsequently reduced the Department’s ability to meet the target. As Water and Sanitation makes up a major component of overall Utility Services: notifications, this has had a key impact on the Directorate’s ability to achieve the target.” Resources will be prioritised to deal with the targeted closure. Responsible person: Pierre Maritz AND RISK MANAGEMENT RISK AND

Due date: 30 September 2014 COMPLIANCE GOVERNANCE, 4.B Customer satisfaction survey community facilities (1 – 5 Likert) 3,2 3,1 3,1 3,2 ✦ Target achieved Maintain the momentum 5.A Number of municipal meetings open to the public New _ 174 193 ✔ Well above target Maintain the momentum The key factor identified in the drop in fully engaged employees is a feeling among employees that they are being required to do more with less and are responding by working harder, but that the sacrifices are becoming too costly. Staff are still behaving in a way that benefits the City, and combined levels of high engagement remain unchanged. However, without acknowledgement from the City that employees’ harder work is appreciated, motivation and service delivery are likely to be affected in the future. The primary intervention lies in intrinsic Remedial action has been taken in the form of the following: 2012/13 rewards of recognition. • A project plan and checklist for all executive directors and Notwithstanding the drop in the “fully engaged” factor, other indicators have continued to improve or remain high: senior managers PERFORMANCE REVIEWPERFORMANCE 5.B Percentage of employees who are truly motivated and will go above and beyond the • 74% of staff believe the City is a leader in the local government sector. • Approval of the Reward and Recognition Policy Biennial target _ 39% 34,6% ✘ call of duty, as measured in a biennial staff engagement survey • 74% of staff believe the City is an employer of choice in the local government sector. • Intervention with the unions on grievances and realignment of • 79% of staff believe the City is one of the best-run municipalities in the local government sector. the workplace skills plan • 70% of staff believe the City is world-class. Responsible person: Justine Quince Due date: Ongoing • 79% of City staff are prepared to put in extra work when required. • 76% of City staff indicated that they are proud to work for the City. This is a strong indication of their personal commitment to the City’s vision, which has increased consistently over the past three surveys. y 5.C Community satisfaction survey (score 1 – 5) citywide 2,8 2,9 2,8 2,9 ✦ Target achieved Maintain the momentum c it Continuous monitoring of this indicator. Coupled with the guiding EE presentations to all line directorates, the City’s Corporate

Services Directorate is looking broadly at the City’s attraction and DEVELOPMENT ORGANISATIONAL 5.D Percentage of people from employment equity target groups employed in the three The positions in levels 1 to 3 are characterised by scarce skills categories in terms of senior management and leadership. The City is not retention strategies. Succession planning, identification of talent highest levels of management in compliance with the City’s approved employment 72% 65,85% 78% 65,55% ✘ the only competitor for these skills, and despite the City attraction strategy, we are not always able to attract, appoint and retain designated in the designated groups at lower levels, and positioning them for u n w ell-r equity plan (EE) groups at this level. identified senior positions are seriously considered and an ongoing A priority. Responsible person: Michael Siyolo Due date: Ongoing (end of the EE plan) 5.E Percentage budget spent on implementation of workplace skills plan (WSP) for the City 95% 102,04% 95% 96,85% ✦ Target achieved Maintain the momentum 5.F Opinion of the Auditor-General Clean audit Clean audit Clean audit Clean audit ✦ Target achieved Maintain the momentum High investment City’s high credit High investment rating (subject High investment 5.G Opinion of independent rating agency rating reaffirmed as rating (subject to ✦ Target achieved Maintain the momentum SUSTAINABILITYECONOMIC to sovereign rating – Aa3 AND PERFORMANCE FINANCIAL Aa3 on 2 April 2013 sovereign rating) rating) 5.H Ratio of cost coverage maintained 2:1 2,67:1 2:1 2,17:1 ✦ Target achieved Maintain the momentum 5.I Net debtors to annual income (ratio of outstanding service debtors to revenue actually 20,5% 20,31% 20,5% 19,9% ✦ Target achieved Maintain the momentum received for services) 5.J Debt coverage by own-billed revenue 2:1 3,24:1 2,5:1 4,13:1 ✦ Target achieved Maintain the momentum STATEMENTS ANNUAL FINANCIAL FINANCIAL ANNUAL APPENDICES

INTEGRATED Annual Report | 2013/14 221 Appendix c CTICC PERFORMANCE SCORECARD FOR THE 2013/14 FINANCIAL YEAR Actual Actual Annual per- Annual per- Reason target formance target formance for Remedial No Indicator 2012/13 2012/13 2013/14 2013/14 Rating variance action 1 BUDGETS: Operating profit – percentage Well Maintain achievement of 100% 419% 100% 190% ✔ above the budgeted operating target momentum profit 2 BUDGETS: Capital projects – percentage of the Well Maintain total number of 80% 95% 80% 100% ✔ above the capital projects for target momentum the year completed or committed 3 BUDGETS: Capital Five-star expenditure – certificate Five-star Five-star maintain five-star Five-star from Tourism Tourism Maintain Target rating through standards Tourism Grading Grading the ✦ achieved effective maintained Grading Council Council momentum management of Council certification certification maintenance achieved 4 International events: Number of Maintain Target international events _ _ 32 33 the ✦ achieved hosted compared momentum to budgeted target 5 Cumulative events: Maintain Number of events Target 500 537 500 535 the hosted compared ✦ achieved momentum to budgeted target 6 Governance: External Unqualified Unqualified Unqualified Unqualified Maintain Target audit – Unqualified audit audit audit audit the ✦ achieved audit report report report report report momentum 7 Human capital development: Percentage of annual Maintain Target total salary budget 5% 5% 5% 5,20% the ✦ achieved spent on training momentum of permanent and temporary staff 8 Governance: Minimum Competency Maintain Level – Number of Target 7 12 7 9 the senior managers ✦ achieved momentum registered for MFMA Competency Course 9 Customer centricity and service excellence: Well Maintain Rating achieved in 75% 82% 75% 82% ✔ above the independent customer target momentum satisfaction survey 10 Procurement: Percentage procurement from Well Maintain BBBEE-compliant 50% 72% 50% 78% ✔ above the suppliers (in terms of target momentum BBBEE Act 53 of 2003) (minimum of 50%) 11 Governance: SDA Corporate Legal Legal Completed Maintain Governance Checklist Checklist compliance compliance Target and the – Completion and completed checklist checklist ✦ achieved submitted momentum timeous submission of completed completed legislative checklist

222 INTEGRATED Annual Report | 2013/14

INTEGRATED Annual Report | 2013/14 223 Appendix D Capital Budget summary per Subcouncil and Ward — Summary per Subcouncil Audited outcome Budget Budget Budget Subcouncil and ward 2013/2014 2014/2015 2015/2016 2016/2017 Subcouncil 1 Blaauwberg 52 670 831 114 477 795 166 938 800 159 980 300 Multi-ward projects within Subcouncil 1 Blaauwberg 4 949 543 9 899 115 0 0 Ward 104 28 019 988 28 766 768 16 250 000 2 000 000 Ward 107 419 041 480 000 100 000 0 Ward 23 2 636 425 3 520 000 24 000 000 10 000 000 Ward 29 4 361 376 1 189 782 5 000 000 800 000 Ward 32 6 531 061 5 278 300 24 858 800 65 880 300 Ward 4 5 753 398 65 343 830 96 730 000 81 300 000 Subcouncil 2 Bergdal 99 743 574 33 077 127 40 100 000 29 721 447 Multi-ward projects within Subcouncil 2 Bergdal 0 2 127 0 0 Ward 111 1 039 103 510 000 1 000 000 0 Ward 6 82 112 275 21 950 000 18 100 000 16 000 000 Ward 7 16 281 092 10 130 000 1 000 000 1 500 000 Ward 8 311 105 485 000 20 000 000 12 221 447 Subcouncil 3 De Grendel 35 835 639 103 923 993 107 699 790 800 000 Multi-ward projects within Subcouncil 3 De Grendel 0 6 797 0 0 Ward 1 5 584 191 66 564 861 36 068 900 250 000 Ward 3 29 402 088 36 491 210 71 630 890 550 000 Ward 5 288 820 421 125 0 0 Ward 70 560 541 440 000 0 0 Subcouncil 4 40 787 434 57 667 258 89 800 930 13 925 300 Multi-ward projects within Subcouncil 4 57 681 1 521 0 0 Ward 25 2 356 753 2 033 466 1 500 000 500 000 Ward 26 19 130 923 0 200 000 5 600 000 Ward 27 699 925 323 000 0 300 000 Ward 28 401 271 2 690 000 0 0 Ward 30 18 140 881 52 619 271 88 100 930 7 525 300 Subcouncil 5 54 243 593 31 096 479 3 400 000 26 510 491 Multi-ward projects within Subcouncil 5 0 119 155 0 0 Ward 106 742 378 1 053 703 1 300 000 5 846 981 Ward 13 30 075 032 4 394 000 1 500 000 5 250 000 Ward 20 391 549 3 895 151 100 000 14 213 510 Ward 24 1 346 937 1 690 000 0 400 000 Ward 31 21 357 048 19 712 544 500 000 0 Ward 50 330 647 231 926 0 800 000 Subcouncil 6 68 094 707 58 081 995 46 580 000 16 950 000 Ward 10 27 623 138 25 724 991 2 000 000 2 500 000 Ward 12 19 715 349 17 319 845 16 730 000 3 850 000 Ward 2 4 732 299 5 050 000 1 000 000 500 000 Ward 22 1 118 266 483 159 0 0 Ward 9 14 905 655 9 504 000 26 850 000 10 100 000 Subcouncil 7 Koeberg 54 563 010 103 516 688 104 672 459 29 200 000 Multi-ward projects within Subcouncil 7 Koeberg 0 94 394 0 500 000 Ward 101 417 857 2 880 000 6 900 000 100 000 Ward 102 3 428 670 494 820 0 0 Ward 103 10 625 132 16 520 000 4 802 000 4 200 000 Ward 105 36 149 731 61 743 232 83 709 951 22 400 000 Ward 21 3 941 620 21 784 242 9 260 508 2 000 000 Helderberg East Subcouncil 46 513 502 95 115 045 179 664 320 215 350 000 Multi-ward projects within Helderberg East Subcouncil 0 32 598 0 450 000 Ward 100 39 707 587 47 628 453 153 350 000 184 750 000 Ward 83 3 897 613 19 087 481 6 600 000 13 500 000 Ward 84 439 629 1 855 447 4 701 447 13 050 000 Ward 85 1 487 234 11 483 100 4 646 873 0 Ward 86 981 440 15 027 966 10 366 000 3 600 000 Xolani Mbundu Subcouncil 9 2 968 978 19 698 332 16 000 000 20 280 000 Multi-ward projects within Xolani Mbundu Subcouncil 9 0 3 399 0 280 000 Ward 18 156 778 910 000 0 0 Ward 87 771 000 16 469 180 16 000 000 20 000 000 Ward 89 0 10 000 0 0 Ward 90 592 696 2 106 320 0 0 Ward 91 1 448 504 199 433 0 0 Chris Hani Subcouncil 9 034 729 15 623 897 9 200 000 9 500 000 Multi-ward projects within Chris Hani Subcouncil 6 100 646 197 0 1 000 000 Ward 92 4 690 766 2 761 721 5 200 000 2 500 000 Ward 93 439 399 610 000 0 0 Ward 94 3 098 905 11 203 979 4 000 000 5 500 000 Ward 99 799 558 402 000 0 500 000 Subcouncil 11 179 656 715 219 399 558 93 825 000 55 000 000 Multi-ward projects within Subcouncil 11 0 201 215 0 0 Ward 42 143 207 315 79 859 565 600 000 2 000 000 Ward 44 21 895 079 56 709 544 5 300 000 3 000 000 Ward 45 1 635 245 500 000 0 0 Ward 49 12 919 077 82 129 234 87 925 000 50 000 000 Subcouncil 12 Mitchells Plain 2 664 863 21 773 720 14 600 000 7 000 000 Multi-ward projects within Subcouncil 12 Mitchells Plain 0 65 059 0 500 000 Ward 78 378 963 1 364 278 0 0 Ward 79 417 923 12 330 000 8 000 000 0 Ward 81 771 517 2 392 500 6 500 000 6 500 000 Ward 82 1 096 460 5 621 883 100 000 0 David Mthetho Ntlanganiso Subcouncil 13 5 395 946 14 464 671 6 000 000 5 800 000 Multi-ward projects within David Mthetho Ntlanganiso Subcouncil 13 4 440 819 846 0 0

224 INTEGRATED Annual Report | 2013/14

Audited

outcome Budget Budget Budget 2014 Subcouncil and ward 2013/2014 2014/2015 2015/2016 2016/2017 Ward 33 1 368 617 2 950 000 4 250 000 2 300 000

Ward 34 2 147 257 4 718 096 1 000 000 1 000 000 CAPITAL DESIGN WORLD Ward 35 808 400 5 876 729 500 000 2 000 000 Ward 36 1 067 232 100 000 250 000 500 000 Subcouncil 14 Miranda Ngculu 50 045 293 110 262 683 29 700 000 24 606 065 Multi-ward projects within Subcouncil 14 Miranda Ngculu 1 607 768 27 328 197 14 000 000 4 106 065 Ward 37 2 707 685 3 755 000 2 000 000 15 000 000 Ward 38 340 791 17 159 000 0 0 Ward 39 9 905 546 7 505 000 12 100 000 4 000 000 Ward 40 34 022 160 33 160 486 1 000 000 1 500 000 Ward 41 1 461 343 21 355 000 600 000 0

Subcouncil 15 184 939 592 234 834 353 80 670 000 205 159 800 OVERVIEW OF Multi-ward projects within Subcouncil 15 0 271 011 0 97 459 800 Ward 51 8 770 740 1 633 591 3 000 000 2 000 000 THE CITY OF CAPE TOWN Ward 52 17 122 947 130 068 978 76 170 000 100 000 000 Ward 53 66 129 245 70 482 061 0 0 Ward 55 90 812 802 29 642 824 0 100 000 Ward 56 1 162 185 2 047 902 1 000 000 0 Ward 57 941 672 687 986 500 000 5 600 000 Good Hope Subcouncil 16 74 436 905 321 161 294 224 854 235 146 979 270 Multi-ward projects within Good Hope Subcouncil 16 38 787 460 207 300 000 0 Ward 54 11 927 314 25 586 081 7 000 000 6 000 000 Ward 74 8 825 780 55 199 974 53 054 400 25 400 000 Ward 77 53 645 024 239 915 032 164 499 835 115 579 270 Subcouncil 17 140 180 879 48 754 927 1 150 000 4 900 000 Multi-ward projects within Subcouncil 17 65 086 278 99 519 800 000 4 500 000 AND RISK MANAGEMENT RISK AND

Ward 46 158 830 3 240 000 0 0 COMPLIANCE GOVERNANCE, Ward 47 74 382 509 44 635 408 350 000 400 000 Ward 48 284 143 300 000 0 0 Ward 60 269 119 480 000 0 0 Subcouncil 18 34 565 936 100 973 585 53 300 000 61 739 500 Multi-ward projects within Subcouncil 18 0 86 530 0 0 Ward 110 1 114 170 3 490 000 0 2 700 000 Ward 63 921 062 315 000 0 1 600 000 Ward 65 306 521 135 000 0 56 039 500 Ward 66 29 087 179 81 177 449 53 000 000 0 2012/13 Ward 68 495 750 6 829 406 0 0

Ward 80 2 641 254 8 940 200 300 000 1 400 000 REVIEWPERFORMANCE South Peninsula Subcouncil 19 126 072 465 126 767 589 150 391 976 111 676 025 Multi-ward projects within South Peninsula Subcouncil 19 1 914 585 170 265 0 0 Ward 43 54 922 312 56 685 405 75 509 951 93 000 000 Ward 61 905 629 3 132 025 5 032 025 2 732 025 Ward 64 20 043 680 12 859 868 17 000 000 0 Ward 67 47 064 714 18 881 826 24 450 000 12 000 000 Ward 69 1 221 544 35 038 200 28 400 000 3 944 000 Subcouncil 20 6 819 040 13 650 016 36 858 800 6 950 000 Multi-ward projects within Subcouncil 20 0 62 762 0 500 000 Ward 58 1 581 386 505 052 5 500 000 0 Ward 59 492 791 1 747 069 22 158 800 150 000 Ward 62 983 754 4 580 000 5 700 000 5 500 000 Ward 71 1 634 200 1 950 000 3 500 000 200 000

Ward 72 1 778 339 4 150 133 0 500 000 DEVELOPMENT ORGANISATIONAL Ward 73 348 570 655 000 0 100 000 Oostenberg Subcouncil 21 35 736 392 19 346 841 16 250 000 11 450 000 Multi-ward projects within Oostenberg Subcouncil 21 0 848 0 0 Ward 108 22 688 633 5 452 387 2 500 000 6 750 000 Ward 11 665 246 10 040 000 4 500 000 500 000 Ward 14 7 573 722 2 246 318 7 650 000 3 000 000 Ward 17 849 934 455 000 0 0 Ward 19 3 958 858 1 152 288 1 600 000 1 200 000 Helderberg 1 Subcouncil 22 5 852 229 114 153 018 133 625 000 86 800 000 Multi-ward projects within Helderberg 1 Subcouncil 22 0 639 0 0 Ward 109 4 965 463 95 810 379 100 875 000 61 000 000 Ward 15 329 940 11 272 000 2 250 000 2 000 000

Ward 16 556 826 7 070 000 30 500 000 23 800 000 SUSTAINABILITYECONOMIC Subcouncil 23 19 839 159 17 440 442 2 450 000 950 000 AND PERFORMANCE FINANCIAL Multi-ward projects within Subcouncil 23 0 507 518 0 0 Ward 75 6 307 815 4 475 440 0 0 Ward 76 12 485 972 11 857 484 2 000 000 0 Ward 88 1 045 371 600 000 450 000 950 000 Solomon Mahlangu Subcouncil 24 33 178 769 86 404 662 10 100 000 2 600 000 Multi-ward projects within Solomon Mahlangu Subcouncil 24 30 968 3 734 198 0 0 Ward 95 570 056 12 158 053 10 100 000 2 600 000 Ward 96 6 317 1 250 000 0 0 Ward 97 20 496 595 61 396 773 0 0 STATEMENTS

Ward 98 12 074 833 7 865 638 0 0 FINANCIAL ANNUAL Multi-ward projects 2 494 482 165 4 014 925 827 3 616 068 636 3 794 437 483 Multi-ward projects 2 494 482 165 4 014 925 827 3 616 068 636 3 794 437 483 Corporate infrastructure projects 643 970 651 516 514 005 431 706 961 426 201 108 Corporate infrastructure projects 643 970 651 516 514 005 431 706 961 426 201 108 4 502 292 996 6 613 105 800 5 665 606 907 5 474 466 789 APPENDICES

INTEGRATED Annual Report | 2013/14 225 Appendix E List of abbreviations, tables and figures

List of abbreviations and acronyms used AOD alcohol and other drugs IHSF Integrated Human Settlements Framework AQMP air Quality Management Plan IIA Institute of Internal Auditors ART antiretroviral therapy IMEP Integrated Metropolitan Environmental Policy ARV antiretroviral(s) IPTN integrated public transport network BioNet biodiversity network IRM Integrated Risk Management (Department) BNG Breaking New Ground IRT integrated rapid transit BPeSA Business Process Enabling South Africa IS&T Information Systems and Technology BRT bus rapid transit IT information technology BWAS bulk water augmentation scheme Mayco Mayoral Committee CBO community-based organisation MEC Member of the Executive Council CCDI Cape Craft and Design Institute MFMA Municipal Finance Management Act CCTV closed-circuit television MOD mass participation, opportunity and access, development and growth CIP conservation implementation plan MPAC Municipal Public Accounts Committee CITI Cape Information Technology Initiative MTREF Medium-term Revenue and Expenditure Framework CITP Comprehensive Integrated Transport Plan NERSA National Energy Regulator of South Africa CRU community residential unit NGO non-governmental organisation CSS community satisfaction survey NKPI national key performance indicator CTA Cape Town Activa NMT non-motorised transport CTFC Cape Town Fashion Council NWMS National Waste Management Strategy CTICC Cape Town International Convention Centre OHS occupational health and safety CTSDF Cape Town Spatial Development Framework PHP People’s Housing Process CTZS Cape Town Zoning Scheme PMTCT prevention of mother-to-child transmission (of HIV) DCCP Dassenberg Coastal Catchment Partnership PRASA Passenger Rail Agency of South Africa DIRC Development Information Resource Centre Province Western Cape Government DWA Department of Water Affairs SANBI South African National Biodiversity Institute ECD early childhood development SANRAL South African National Rail Agency Limited ED executive director SAOGA South African Oil and Gas Alliance EDP Economic Development Partnership SAPS South African Police Service EGS Economic Growth Strategy SDBIP service delivery and budget implementation plan EHP emergency housing programme SDS Social Development Strategy EMT Executive Management Team SETA sectoral education and training authority EPWP Expanded Public Works Programme SEZ special economic zone ERMD Environmental Resource Management Department SFA strategic focus area FET further education and training SMME small, medium and micro-sized enterprise GHS General Household Survey (conducted by Statistics South Africa) SOV single-occupancy vehicle GIS geographic information systems SPEARS Specialised Radio and Electronic Services GPS Global positioning system TB tuberculosis HSDG Human Settlements Development Grant TCT Transport for Cape Town IAMP infrastructure asset management programme TDF Tourism Development Framework ICT information and communications technology TDM travel demand management IDA incremental development area TMC Transport Management Centre IDP Integrated Development Plan TOD transit-oriented development

226 INTEGRATED Annual Report | 2013/14

TRA temporary relocation area List of figures 2014 UISP Upgrading of Informal Settlements Programme Figure 2.1: City of Cape Town’s governance structure WORLD DESIGN CAPITAL DESIGN WORLD USDG Urban Settlements Development Grant Figure 2.2: City of Cape Town’s Executive Management Team structure WCWSS Western Cape water supply system Figure 2.3: Comparison of residents’ overall perceptions of the City WDM water demand management Figure 2.4: Comparison of residents’ perceptions of the City as a service provider WDS water demand strategy Figure 2.5: Comparison of residents’ levels of trust in the City WWF Worldwide Fund for Nature

Figure 2.6: Comparison of businesses’ overall perceptions of the City OVERVIEW OF WWTW wastewater treatment works

Figure 2.7: Comparison of businesses’ perceptions of the City as a THE CITY OF CAPE TOWN service provider List of tables Figure 2.8: Comparison of businesses’ levels of trust in the City Table 1.1: Cape Town Spatial Development Framework strategies and Figure 3.1: Major infrastructure risks within development areas substrategies Figure 3.2: Saving water is a way of life for the City of Cape Town Table 3.1: IDP objectives and programmes for SFA 1 Figure 3.3: Waste management hierarchy of the National Waste Table 3.2: City of Cape Town major capital projects for the 2013/14 Management Strategy financial year Figure 3.4: The City of Cape Town’s integrated public transport AND RISK MANAGEMENT RISK AND

Table 3.3: Events statistics illustrating impact on Cape Town network plans COMPLIANCE GOVERNANCE, Table 3.4: Operating repairs and maintenance by expenditure item Figure 5.1: Funding of the City of Cape Town’s budget Table 3.5: Expenditure and budget for developers’ contributions and Figure 5.2: Expenditure on municipal services per every R1 000 of private sector property rates Table 3.6: City’s capital spend on water services

Table 3.7: City’s investment in waste infrastructure 2012/13 Table 3.8: Transport for Cape Town strategies PERFORMANCE REVIEWPERFORMANCE Table 3.9: Major road upgrades and repairs in 2013/14 Table 3.10: Passenger usage of MyCiTi services Table 3.11: IDP objectives and programmes for SFA 2 Table 3.12: In-service training for staff of the City of Cape Town’s Safety and Security Directorate Table 3.13: IDP objectives and programmes for SFA 3 Table 3.14: Breakdown of housing opportunities in 2013/14

financial year DEVELOPMENT ORGANISATIONAL Table 3.15: Integrated human settlements targets for 2014/15 Table 3.16: Drinking water quality in the City of Cape Town Table 3.17: Health services scores in Community Services Survey Table 3.18: IDP objectives and programmes for SFA 4 Table 4.1: IDP objectives and programmes for SFA 5 Table 4.2: City of Cape Town total workforce profile as at 30 June 2014 ECONOMIC SUSTAINABILITYECONOMIC

Table 4.3: Total number of City employees with disabilities as at AND PERFORMANCE FINANCIAL 30 June 2014 Table 4.4: Employment equity initiatives in 2013/14 financial year Table 5.1: Membership of the Municipal Public Accounts Committee (MPAC) Table 5.2: MPAC meeting attendance STATEMENTS

Table 5.3: MPAC activities and outputs for the year FINANCIAL ANNUAL APPENDICES

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